Suppose the law of diminishing marginal utility holds for coffee. As a person drinks more coffee during the day, the total utility he or she receives will:
a. increase faster and faster.
b. fall steadily.
c. remain constant.
d. rise, but at slower and slower rates.
d
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If salt has a ________, then ________ pay most of any tax levied on salt
A) high elasticity of supply; sellers B) low elasticity of demand; buyers C) high elasticity of demand; buyers D) low elasticity of supply; buyers
In a competitive market the demand curve shows the ________ received by consumers and the supply curve shows the ________
A) economic surplus; opportunity cost B) utility; average cost. C) marginal benefit; marginal cost D) net benefit; net cost
Firms can only use one form of price discrimination
Indicate whether the statement is true or false
Which of the following is not a source of inequality in incomes?
A. Redistribution of income B. Differences in intensity of work C. Differences in ability D. Risk taking