Refer to the information provided in Figure 3.7 below to answer the following question(s).
?Figure 3.7Refer to Figure 3.7. A movement from Point A to Point B on demand curve D2 would be caused by a(n)
A. increase in the price of pizza.
B. decrease in income, assuming pizza is a normal good.
C. decrease in the price of pizza.
D. decrease in the price of burritos, assuming that pizza and burritos are substitutes.
Answer: C
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When U.S. real GDP increases, U.S. imports
A) increase by more than the change in real GDP. B) decrease by less than the change in real GDP. C) decrease by the same amount. D) increase by less than the change in real GDP. E) increase by the same amount.
After watching a movie, Alan chooses not to watch a second and goes for a walk instead. Economists could explain his choices using the concept of:
A. budget constraints. B. diminishing marginal utility. C. income effect. D. substitution effect.
The Organization of the Petroleum Exporting Countries (OPEC) is a cartel that comprises more than a dozen oil-exporting nations, primarily located in the Middle East and Africa. OPEC strives to boost oil prices worldwide by limiting output from its members. What factors might determine how the cartel divides up its joint profits amongst its members?
What will be an ideal response?
Shortly after the turn of the century, U.S. Steel owned most of the iron ore reserves in the country. This is an example of
A. a barrier to entry from owning an important resource. B. monopoly due to government restrictions. C. a barrier to entry from scale economies. D. monopoly due to governmental entry restrictions.