Which of the following is a correct explanation for why the aggregate demand curve slopes downward? a. as the price level decreasesdecreases, consumers substitute moremore expensive goods for lessless expensive choices. b. as the price level decreasesdecreases, the labor force increasesincreases. c. as the price level decreasesdecreases, the real value of cash balances increasesincreases, and total expenditures riserise. d. as the price level decreasesdecreases, exports become moremore expensive overseas and imports become relatively lessless expensive domestically, and thus net exports riserise.

Highland company produces a lightweight backpack that is popular with college students. standard variable costs relating to a single backpack are given below

Which two of the following are benefits of consumer programs

Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers.firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?