If a consumer is initially at an optimum, and then the price of Y decreases, then
A) MUX/PX > MUY/PY.
B) MUX/PX < MUY/PY.
C) MUX/PX = MUY/PY.
D) MUX/MUY < PY/PX.
Answer: B
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Considering all costs of production, the marginal cost of producing a hot dog is $1.00. The price of a hot dog is $1.50. Thus, the producer surplus from this hot dog is
A) $1.50. B) $1.00. C) $.50. D) Zero, because $1.50 is the most anyone would pay for a hot dog.
If Deluxe Fruits offers a $1.00 coupon for their fruit cups, this is an example of ________.
A) second-degree price discrimination B) first-degree price discrimination C) arbitrage D) market segmentation
The law of increasing costs states that the opportunity cost of producing a good increases as more of the good is produced
Indicate whether the statement is true or false
The WTO functions as:
A. The enforcer of trade rules for the world. B. An international informant on terrorism. C. An international weapons inspector. D. The international authority on currency exchange.