Luxury brands like designer sun glasses are goods that may exhibit snob effects. Suppose this is true, and the price for a particular brand increases. What happens to the component changes in the quantity demanded?
A. Pure price effect is positive, snob effect is negative.
B. Pure price effect and snob effect are positive.
C. Pure price effect is negative, snob effect is positive.
D. Pure price effect and snob effect are negative.
C. Pure price effect is negative, snob effect is positive.
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Which of the following is true of cost curves?
A) The ATC curve goes through the minimum of the MC curve. B) The AVC curve goes through the minimum of the MC curve. C) The MC curve goes through the minimum of the ATC curve, to the left of the minimum of the AVC curve. D) The MC curve goes through the minimum of the AVC curve, to the right of the minimum of the ATC curve. E) The MC curve goes through the minimum of both the AVC curve and the ATC curve.
In responding to the Phillips curve hypothesis, Friedman argued that the Fed can peg the
a. unemployment rate. b. inflation rate. c. growth rate of real national income. d. All of the above are correct.
Suppose you know that at the current level of production average total cost equals marginal cost, then you know that it is also true that:
A. fixed costs are zero. B. average fixed costs are increasing. C. average total cost will decrease if production is increased. D. average total cost is minimized at the current level of output.
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?