5. Questions and Problemss Identify the error in the following statement: "The price of T-shirts keeps rising, and people keep buying more and more. T-shirts must have an upward-sloping demand curve." O f the supply of T-shirts keeps decreasing, the price will rise, and people will buy more T-shirts. O f the demand for T-shirts keeps increasing, the price will rise, and more shirts will be bought at the higher price than the lower price (assuming the supply curve of T-shirts is upward sloping). O There is nothing that explains the phenomenon other than an upward-sloping demand curve. O f the demand for T-shirts increases while the supply decreases by more, then the price of T-shirts will rise and more T-shirts will be bought and sold.

5. Questions and Problemss Identify the error in the following statement: "The price of T-shirts keeps rising, and people keep buying more and more. T-shirts must have an upward-sloping demand curve." O f the supply of T-shirts keeps decreasing, the price will rise, and people will buy more T-shirts. O f the demand for T-shirts keeps increasing, the price will rise, and more shirts will be bought at the higher price than the lower price (assuming the supply curve of T-shirts is upward sloping). O There is nothing that explains the phenomenon other than an upward-sloping demand curve. O f the demand for T-shirts increases while the supply decreases by more, then the price of T-shirts will rise and more T-shirts will be bought and sold.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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