The price of peaches goes up and I observe you buying more strawberries. This implies that strawberries must be an inferior good.
Answer the following statement true (T) or false (F)
False
Rationale:
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An expected future increase in the price of gasoline may
A) increase the demand for gasoline now. B) decrease the demand for gasoline now. C) increase the supply of gasoline now. D) make gasoline an inferior good.
Select the type of market that is described by the following attributes: many firms, differentiated products, and free entry
a. natural monopoly b. perfectly competition c. monopolistic competition d. monopoly
A monopolist faces a demand curve given by P = 60 -2Q and has total costs given by TC = Q2. Its marginal revenue is MR = 60 - 4Q and its marginal cost is MC = 2Q. Now suppose that the country in which this monopolist is located decides to engage in international trade. The world price of the product produced by the monopolist is $10. What is the firm's profit-maximizing output level?
a. 5 b. 20 c. 30 d. 40
Economics can be described as the study of how people use ________ resources to satisfy ________ wants.
A. unlimited; unlimited B. limited; limited C. unlimited; limited D. limited; unlimited