A Technological Change That Positively Affects Business Expectations Will

question 137

Multiple Choice

A technological change that positively affects business expectations will:

• A)cause a rightward shift of the investment demand curve.
• B)cause a leftward shift of the investment demand curve.
• C)cause an upward movement along the investment demand curve.
• D)cause a downward movement along the investment demand curve.
• E)make the investment demand curve upward sloping.

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Definitions:

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, as opposed to a normal good where demand increases with income.

Linear Demand Curve

A demand curve that shows a straight-line relationship between price and quantity demanded, suggesting a constant rate of change.

Constant Elasticity

refers to a condition in economics where the elasticity of a function, such as demand or supply, remains constant along the curve, indicating a proportional and consistent reaction to changes in other variables.

Relatively Elastic

Describes a situation where a product or service's demand or supply is significantly responsive to changes in price, indicating a greater percentage change in quantity demanded or supplied than the percentage change in price.