Describe the changes in the variables that will cause the demand for a product to decrease, shifting the demand curve to the left
What will be an ideal response?
a decrease in income if the product is a normal good; an increase in income if the product is an inferior good; a decrease in the price of a substitute good; an increase in the price of a complementary good; a decrease in population; a decrease in consumer preference for the good; a decrease in the expected future price of the good
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A network externality exists
a. in the television industry b. outside the television industry c. whenever an increase in the size of a network increases its value to current and potential members d. whenever an increase in the size of a network increases its average total cost of production e. whenever an increase in the size of a network increases its total cost of production
If the Federal Reserve is engaging in open market operations designed to expand the money supply, it is probably
a. selling government securities to banks. b. selling government securities to the public. c. buying government securities from the public. d. encouraging banks to exchange their Fed deposits for currency.