If a rise in the price of good X causes the quantity demanded of good X to fall, then
a. the Engel curve for good X is downward sloping.
b. the (ordinary) demand curve for good X is downward sloping.
c. the demand for good X is elastic.
d. good X must be a Giffen good.
b. the (ordinary) demand curve for good X is downward sloping.
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The Sherman Act and the Clayton Act were passed into law more than 100 years ago. What characteristic of each of these laws enables them to remain applicable in today's modern economy?
What will be an ideal response?
By itself, the substitution effect of an increase in the wage rate will
a. always lead to an increase in the quantity of labor supplied b. always lead to a decrease in the quantity of labor supplied c. lead to an increase in the quantity of labor supplied only if leisure is like a normal good d. lead to an increase in the quantity of labor supplied only if leisure is not a normal good e. lead to an increase in the quantity of labor supplied only if the income effect works in the same direction