Sarah spends $100 a year on magazines and ice cream. The table above shows her utility from each good. If the price of a magazine is $5 and the price of ice cream is $5 per gallon, how does Sarah spend the $100?
What will be an ideal response?
Sarah buys 6 magazines and 14 gallons of ice cream. She spends $100 and her marginal utility per dollar from magazines and ice cream is the same, 3.6 units per dollar.
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Does the short-run Phillips curve have a positive or negative slope? Explain how this slope is derived
What will be an ideal response?
A well-known women's college whose tuition lagged below similar schools found recruiting difficult and enrollment falling. A substantial tuition increase was implemented, and dormitories were soon full again. This can be explained by
a. the law of demand. b. the fact that education at the school was an inferior good. c. the fact that people sometimes base perceptions of quality on price (snob effect). d. elastic demand.
A business that is owned by one individual is a? __________.
A. master limited partnership B. partnership C. limited liability company D. corporation E. sole proprietorship
What does the GDP gap measure?
What will be an ideal response?