When the price of milk rises, there is no change in the amount of dog food purchased. This is an example of:
A. indifference trade-off between the two goods.
B. the interaction between -two correlated goods.
C. the value people place on dogs versus milk.
D. two items that are uncorrelated.
Answer: D
You might also like to view...
If Ringo is risk averse, at a wealth of $200,000 his utility of wealth curve has a ________ slope and his marginal utility of wealth is ________ than at a wealth of $100,000
A) negative; smaller B) negative; larger C) positive; smaller D) positive; larger
When there is an improvement in technology, holding all else constant,
a. the production possibilities frontier will shift inward b. society faces larger opportunity costs from shifting productive resources from one use to another c. goods and services will increase in price d. the economy must have some idle resources e. the production possibilities frontier will shift outward
When a good is taxed, the burden of the tax
a. falls more heavily on the side of the market that is more elastic. b. falls more heavily on the side of the market that is more inelastic. c. falls more heavily on the side of the market that is closer to unit elastic. d. is distributed independently of relative elasticities of supply and demand.
Exhibit 9-6 Monopoly
?
When the monopolist is maximizing total profit in Exhibit 9-6, the average total cost of producing that output level is:
A. $4. B. $6. C. $7. D. $8.