Prices of smartphones (assume that this is a normal good) have fallen in recent years. Over this same period, the price of the components used to produce smartphones has also fallen and consumer incomes have risen
Which of the following best explains the falling prices of smartphones?
A) The supply curve for smartphones has shifted to the right while the demand curve for smartphones has shifted to the left.
B) The supply curve for smartphones has shifted to the right more than the demand curve has shifted to the right.
C) The demand curve and the supply curve for smartphones have both shifted to the left.
D) The demand curve for smartphones has shifted to the right more than the supply curve has shifted to the right.
B
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Official figures indicate that the percentage of persons below the poverty level in the U.S. is more today than it was in 1959
a. True b. False Indicate whether the statement is true or false
Which of the following is an accurate description of the aggregate demand curve?
a. It is the sum of all individual demand curves for all products b. It shows all price levels at which firms' unit costs equal their percent markups. c. It is the curve decided upon by the voters. d. It shows the relationship between firms' unit costs and their percentage markups. e. It shows the equilibrium level of GDP associated with price level.