In the market for jeans, which of the following events increases the de-mand for a pair of jeans?
A. The wage rate paid to garment workers rises.
B. The price of a denim skirt (a substitute for jeans) rises.
C. The price of denim cloth falls.
D. New technology reduces the time it takes to make a pair of jeans.
B The other factors listed change the supply; only answer B in-creases the demand.
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The market demand curve is the sum of individual quantities demanded at each price
a. True b. False
Consumer surplus increases when the market price of a commodity declines
Indicate whether the statement is true or false
In periods of high inflation,
A. people want to hold on to as much money as possible. B. the purchasing power of money is decreasing. C. nobody wants to work and earn income. D. low nominal interest rates are likely to result.
Marv Pilson has $50 worth of groceries in a shopping cart at his local Shop 'n Save. Assume that the marginal utility per dollar of the liter bottles of soft drink in Marv's cart equals 50. The marginal utility per dollar of the boxes of cereal in Marv's
cart equals 20. Marv has only $50 to spend, but has not yet paid for his groceries. How can Marv increase his total utility without spending more than $50? A) Marv should substitute his favorite soft drink or the cereal in his cart for generic brands that have lower prices. B) Marv should buy more boxes of cereal and fewer bottles of soft drink. C) Marv should buy fewer boxes of cereal and more bottles of soft drink. D) Marv should buy fewer boxes of cereal and fewer bottles of soft drink. He can then spend more on other items.