As the price of a good increases:
a. that good will yield less satisfaction per dollar than before.
b. consumers will have more real income to spend on other goods.
c. the quantity demanded of that good will also increase.
d. the utility-maximizing quantity of that good willl not change.
e. consumers will buy the good and substitute away from other goods.
a
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According to the classical theory, an inward shift in aggregate demand would reduce
A) real Gross Domestic Product (GDP) and the price level. B) the price level but have no effect on real Gross Domestic Product (GDP). C) real income but have no impact on the price Gross Domestic Product (GDP). D) the price level but increase real Gross Domestic Product (GDP).
The exchange rate is $1 = 110 yen. If the price of a Japanese good is 37,500 yen, what is the approximate price of the good in dollars?
A) $29.45 B) $4,125,000 C) $294.49 D) $340.91 E) none of the above