Andrew buys yogurt, and he would be willing to pay more than he now pays. Suppose that Andrew has a change in his tastes such that he values yogurt more than before. If the market price is the same as before, then
a. Andrew's consumer surplus would be unaffected.
b. Andrew's consumer surplus would increase.
c. Andrew's consumer surplus would decrease.
d. Andrew would be wise to buy less yogurt than before.
B
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A private good is ________ and ________
A) rival; excludable B) nonrival; excludable C) rival; nonexcludable D) nonrival; nonexcludable
Economic variables that tend to move in tandem with the overall phases of the business cycle are called leading indicators
Indicate whether the statement is true or false
An improvement in technology shifts the supply curve rightward
a. True b. False
If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices. B. lower level of output and prices. C. higher level of output and prices. D. lower level of output at higher prices.