Mark complains: "I can't believe they raised the price of comic books, and because of this, I'm going to reduce my demand for comic books." Is Mark stating the concept of demand correctly?
Mark has confused the concept of demand with a change in quantity demanded. In response to the price increase, he will reduce his quantity demanded. Factors other than price will affect Mark's demand, such as his income, his tastes, etc. If these change, his demand will change.
Economics
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Economics
The sum of the marginal propensity to consume (MPC) and the marginal propensity to save (MPS) always equals:
a. 1. b. 0. c. the interest rate. d. the marginal propensity to invest (MPI).
Economics