Refer to the above figure. Suppose E is the original equilibrium. An increase in the U.S. demand for Japanese-made goods will lead to
A) a depreciation of the yen and an increase in the quantity of yen sold per week.
B) a depreciation of the yen and a decrease in the quantity of yen sold per week.
C) an appreciation of the yen and an increase in the quantity of yen sold per week.
D) an appreciation of the yen and a decrease in the quantity of yen sold per week.
A
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A purely self-interested diner is more likely to tip:
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Suppose a consumer is at an optimum, consuming 6 hamburgers a week at a price of $1.50 each and 10 donuts a week at 50 cents a donut. If the price of a hamburger increases to $2.00, what will the consumer do to arrive at a new equilibrium? Why?
What will be an ideal response?