When the price of DVDs falls relative to movie and restaurant prices, and consumers buy more of the DVDs, economists call this
A) indifference.
B) satisfaction.
C) marginalization.
D) substitution.
Answer: D
You might also like to view...
If you and I agree to exchange four ginger snaps for one chocolate chip cookie, then it must be true that
a. we are both at least as well off as we were before b. I am better off than I was before, but you are not c. you are better off than you were before, but I am not d. we are both better off than before e. we are both worse off than before
The demand curve for capital is
a. its entire marginal physical product curve. b. the downward-sloping portion of its marginal physical product curve. c. its entire marginal revenue product curve. d. the downward-sloping portion of its marginal revenue product curve.
A 2009 Chevrolet model has more horsepower than the 2008 version and is included in the BLS basket of goods. BLS attempts to account for this change in the market basket by
a. dropping the good from the basket. b. substituting in a different vehicle with the same horsepower as the 2008 model. c. adjusting the share of the market basket allocated to transportation. d. adjusting the price of the good to account for the quality change.
Figure 4-21
At price P3 in Figure 4-21, what will tend to happen?
a.
There will be a shortage, and the price will fall.
b.
There will be a shortage, and the price will rise.
c.
There will be a surplus, and the price will rise.
d.
There will be a surplus, and the price will fall.
e.
Equilibrium will occur in the market.