Suppose people had been paying $10 for a pizza at Little Weezer's. If their demand increases to the point where they will now pay $15 for the same pizza, then
A) the marginal cost of making pizzas would tend to increase.
B) the quantity supplied of pizzas would tend to increase.
C) both A and B are true.
D) none of the above are true.
C
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Total surplus:
A. can never be zero.
B. can never fall below zero.
C. is always above zero.
D. is less than the consumer surplus.
When someone buys a bond, they give up the bond's price in exchange for:
A. right of ownership. B. future income. C. current income. D. stock.
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.
From 2001 to 2005 there was a dramatic rise in the price of houses. If this rise made people feel wealthier, then it would have shifted
a. aggregate demand right. b. aggregate demand left. c. aggregate supply right. d. aggregate supply left.