When the price of a product decreases, the marginal revenue product curve in a perfectly competitive market

A. becomes steeper.
B. shifts to the left.
C. shifts to the right.
D. does not change.


Answer: B

Economics

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After a hurricane in Florida knocked out the regional water supply for several days, the demand for bottled water increased sharply. In a market economy, how will this increase in demand affect the equilibrium price and quantity of bottled water?

a. Price will increase, and quantity will decrease. b. Price will decrease, and quantity will decrease. c. Price will decrease, and quantity will increase. d. Price will increase, and quantity will increase.

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Money is functioning as a store of value when you

A. Save your cash to pay for tuition next semester. B. Pay your tuition in installments rather than all at one time. C. Take out a student loan to buy books. D. Use it to compare the cost of tuition 10 years ago to the cost today.

Economics