In January, buyers of gold expect that the price of gold will fall in February. What happens in the gold market in January, holding everything else constant?
A) The demand curve shifts to the right. B) The quantity demanded decreases.
C) The demand curve shifts to the left. D) The quantity demanded increases.
Question 2
Which of the following statements is true?
A) Trade-offs do not apply when the consumers purchase a product for which there is excess supply, such as with a stock clearance sale.
B) Economics is a social science that studies the trade-offs we are forced to make because resources are unlimited.
C) Every individual, no matter how rich or poor, is faced with situations that require trade-offs.
D) Any time you have to decide which action to take you are experiencing economic equity.
