Holding supply constant, a reduction in demand leads to
A. lower prices and lower quantity supplied.
B. higher prices and higher quantity supplied.
C. higher prices and lower quantity supplied.
D. lower prices and higher quantity supplied.
Answer: A
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Edgar only consumes protein shakes with his income, I. The price of shakes is p
a. What is Edgar's demand equation for shakes? b. Can protein shakes be an inferior good for Edgar? Explain. c. What is the price elasticity of Edgar's demand for shakes? Derive using calculus. d. What is the income elasticity of Edgar's demand for shakes?
What are the main differences between neoclassical economics and behavioral economics?
a. Neoclassical economics is mainly theoretical. b. Behavioral economics does not take as given that decision makers are rational. c. Neoclassical economics assumes that decision makers are fully informed. d. All of the above.
The U.S. gives foreign aid primarily through:
A. the World Bank. B. UNICEF. C. USAID. D. the Peace Corps.
If a consumer experiences a decrease in income, the new budget constraint will have the same slope as the old budget constraint
a. True b. False Indicate whether the statement is true or false