Suppose Sprite and 7-Up are considered by consumers to be substitutes. The likely economic impact of a decrease in the price of 7-Up is a:
a. movement up along the demand curve for Sprite.
b. decrease in the supply of 7-Up
c. rightward shift of the demand curve for Sprite.
d. leftward shift of the demand curve for Sprite.
d
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The above figure shows the market for labor. The employer is a monopsony. At the equilibrium level of employment, which of the following is CORRECT?
A) MCL = VMP B) VMP > W C) W < MCL D) All of the above are correct.
Suppose total benefits and total costs are given by B(Y) = 600Y ? 12Y2 and C(Y) = 20Y2. What level of Y will yield the maximum net benefits?
A. 600/64 B. 600/32 C. 300/8 D. 300/64
If people withdraw $1,000 from the nation's money market mutual funds and redeposit the funds in various checkable and debitable accounts, then
A. M1 and M2 will remain unchanged. B. M1 and M2 will increase. C. M1 will increase, M2 will remain unchanged. D. M1 will increase, M2 will decrease.
If a casino locates in a small suburban/rural area within 20 miles of a larger city that already has a casino, the degree of "local substitution" is likely to be
A. actually negative. B. nearly zero. C. nearly complete. D. significant.