The long-run equilibrium of monopolistic competition is characterized by

The law of demand can be explained as

A) legal reasons people make purchases in the marketplace. B) people are willing to make limited sacrifices to acquire products. C) a lot of people wanting the same thing. D) the higher the price, the smaller the quantity demanded, ceteris paribus.

After years of hard work in the field of macroeconomics, you win the Nobel Prize in economics (currently about $1.5 million). What is the most likely effect of this prize on your consumption function?

a. It will shift downward temporarily. b. It will shift upward temporarily. c. It will shift downward permanently. d. It will shift upward permanently. e. none of the above