In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. If X is an inferior good, a decrease in income will:
A. increase S, decrease P, and increase Q.
B. decrease D, decrease P, and increase Q.
C. decrease D, decrease P, and decrease Q.
D. increase D, increase P, and increase Q.
Answer: D
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________ are non-excludable in consumption
A) Public goods and private goods B) Public goods and common pool resources C) Private goods and club goods D) Club goods and common pool resources
An externality can be a
A) cost or a benefit. B) benefit but not a cost. C) cost but not a benefit. D) marginal cost but not a total cost.
Measured in dollar terms, the two largest U.S. antipoverty programs are
a. cash transfers and medical care b. cash transfers and food assistance c. food and housing assistance d. medical care and food assistance e. medical care and housing assistance
Refer to Figure b. Suppose consumers choose to consume water in two different states, sunny weather, WS and during a hurricane, WH. As the consumer moves from point A to B along the indifference curve, the variability of consumption:
A. decreases.
B. increases.
C. remains constant.
D. increases for one good, but decreases for the other.