In January, 2,500 quarts of ice cream are sold in Boston at $2.50 a quart. In February, 3,000 quarts are sold at $2.00 a quart. This change in quantity sold and price may have been caused by
A. a reduction in wages in the Boston area.
B. the introduction of labor-saving automated ice cream-packing machinery.
C. the release of a medical study showing that ice cream consumption improves mental health.
D. the decision by Boston ice cream sellers to eliminate discount coupons.
Answer: B
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You paid $145 for an iPod Nano. The cash you sacrificed is a(n)
A) explicit cost. B) implicit cost. C) deferred cost. D) accrued cost.
Assume that there is a $20 billion increase in government purchases. If MPC = 0.8, the sum of the indirect effect on aggregate demand through induced additional consumption purchases is equal to: a. $16 billion
b. $20 billion. c. $80 billion. d. $100 billion.
Bilateral monopoly exists when
A. there are two monopolistic buyers trying to buy resources. B. a firm is both a monopoly in its output market and a monopsonist in its input market. C. a single buyer confronts a single seller. D. two labor unions are trying to represent the same group of workers.
If a family's MPC is 0.7, it means that the family is:
A. Operating at the break-even point B. Spending seven-tenths of any increment to its income C. Necessarily dissaving D. Spending 70 percent of its disposable income