Suppose Spam is an inferior good. If the U.S. economy hit bad times, and demanders' incomes were to fall, which of the following would tend to occur?
A) Spam sales would increase.
B) Spam demand would decrease.
C) The price of Spam would increase.
D) Both A and C above.
E) Both B and C above.
D
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Explain how price can be a regulator, that is, how it can coordinate the plans of buyers and sellers
What will be an ideal response?
According to the figure shown, if Sarah puts forth low effort, then Joe should:
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.
A. put forth high effort.
B. put forth low effort.
C. leave the market.
D. give an ultimatum.
Refer to the above diagram of the market for corn. If the price in this market is at $2 per bushel, then there will be a:
Surplus and the price will tend to rise Surplus and the price will tend to fall Shortage and the price will tend to rise Shortage and the price will tend to fall
In the United States, day-to-day decisions about monetary policy are carried out by
A) the Board of Governors. B) the Chairman of the Board of Governors. C) the Federal Open Market Committee. D) the Open Market desk in New York. E) none of the above