Suppose that the price of cornflakes is $3.0 per box and the price of oatmeal is $1.5 per box. Both boxes contain the same number of ounces of cereal. The relative price of cornflakes in terms of oatmeal is
A. 0.67.
B. 1.5
C. 2.0
D. 1.0.
Answer: C
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One reason the supply of cell phones has increased is:
A. cell phone towers are much more common. B. better technology allows them to be produced more cheaply. C. consumer preferences for cell phones has increased. D. expectations of the near future are that no landlines will exist.
If orange juice and apple juice are substitutes, an increase in the price of orange juice will shift the demand curve for apple juice to the right
a. True b. False Indicate whether the statement is true or false
Give an example of how economics can be used in either a marriage, politics, or education.
What will be an ideal response?
Monopolistically competitive firms must produce where there is an optimal allocation of resources because the firms do not present significant barriers to entry to potential competitors.
Answer the following statement true (T) or false (F)