There has recently been an increase in the price of dairy products used in the production of ice cream. High temperatures have also induced people to consume more ice cream
In the market for ice cream, the effects these changes will have on equilibrium price and quantity are A) price will increase, and quantity will decrease.
B) price will increase, and the effect on quantity is indeterminate.
C) price will decrease, and quantity will increase.
D) price will decrease, and the effect on quantity is indeterminate.
B
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If a price ceiling on coffee is set above the market-clearing price, then
A) the quantity of coffee demanded will decrease. B) the quantity of coffee supplied will increase. C) the quantity demanded for coffee will increase. D) all of the above will occur. E) none of the above will occur.
Jeffrey spends all of his income on warm-up suits and running shoes, and the price of a warm-up suit is four times the price per pair of shoes. Then, in order to maximize total utility, Jeffrey should
a. buy four times as many warm-up suits as pairs of running shoes b. buy four times as many pairs of running shoes as warm-up suits c. divide his income equally between warm-up suits and running shoes d. buy both items until the marginal utility of a warm-up suit is four times the marginal utility of a pair of running shoes e. buy both items until the marginal utility of a pair of running shoes is four times the marginal utility of a warm-up suit
Other things equal, one would predict that market wages would be relatively high when
a. the supply of labor is high. b. the demand for labor is low. c. the supply of labor is low. d. Both (a.) and (b.) are correct
The shaded area in Figure 24.1 represents
A. Total cost. B. Total loss. C. Total revenue. D. Total profit.