If the price of a good decreases, ceteris paribus, the consumer will experience (Select all that apply.)
a desire to consume a different bundle.
the budget constraint rotating outwards along the x-axis
the budget constraint rotating inwards along the x-axis
an increase in utility.
a northern or eastern movement on the indifference map
a southern or western movement on the indifference map.
An increase in utility
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Which of the following are scarce? Select one:
a. time for recreation b. clean air c. information d. all of the above
Figure 4-24
Refer to . The price that buyers pay after the tax is imposed is
a.
P1.
b.
P2.
c.
P3.
d.
impossible to determine from the figure.
The foreign trade effect states that, ceteris paribus:
A. The quantity demanded of domestic goods falls when the domestic price level falls. B. The quantity demanded of imported goods falls when the price of imported goods falls. C. Foreign consumers have more incentive to buy American-made products when U.S. prices rise. D. The quantity demanded of domestic goods rises when the domestic price level falls.
The sum of internal and external costs is
A) private cost. B) social cost. C) opportunity cost. D) common property.