A sandwich shop lowers the price of tuna sandwiches. The shop suddenly sells more tuna sandwiches than usual. Which of the following does this change in sales show?
A. Substitution effect
B. Income effect
C. Law of demand
D. Law of supply
Ans: C. Law of demand
Economics
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A recession is a period of time in which real GDP falls
a. True b. False Indicate whether the statement is true or false
Economics
Which of the following offers theories to explain why the government, like the private sector, may also "fail"?
A. social economics B. public choice theory C. rational expectations theory D. Keynesian economics
Economics