If the consumer gets 40 utils from consuming four CDs, 45 utils from consuming five CDs, and 48 utils from consuming six CDs, then the consumer's marginal utility is:
A. increasing.
B. decreasing.
C. constant.
D. increasing at an increasing rate.
Answer: B
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According to the substitution effect, a decrease in the price of a product leads to an increase in the quantity demanded because buyers:
a. purchase more complementary goods. b. purchase more substitute goods. c. purchase fewer substitute goods. d. have more real income.
If the price elasticity of demand for CSUN sweatshirts is 1.5, then
a. an increase in price will cause total consumer expenditures on CSUN sweatshirts to fall b. an increase in price will cause total consumer expenditures on CSUN sweatshirts to increase c. an increase in price will cause total consumer expenditures on CSUN sweatshirts to stay the same d. a decrease in price will cause total consumer expenditures on CSUN sweatshirts to fall e. none of the above
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
According to the graph shown, if this economy were an autarky, producers would enjoy area:
A. ABC. B. H. C. HDE. D. A.
Which of the following increases the supply of gasoline?
A) a situation where the quantity of gasoline demanded exceeds the quantity supplied B) an increase in the price of gasoline C) a decrease in the price of a resource used to produce gasoline, such as crude oil D) a decrease in the demand for gas-guzzling, sport utility vehicles E) an increase in income if gas-guzzling, sport utility vehicles are a normal good