An increase in the price of a good could be caused by
a. An increase in supply
b. An increase in demand.
c. A decrease in supply and an increase in demand.
d. Either b. or c.
d
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At the utility maximizing level, the ratio of the marginal utility of apples to oranges is 3:2 . If the price of an apple is $6, then the price of an orange is _____
a. $6 b. $4 c. $9 d. $8
The gain that occurs when the owner of an asset actually sells it for more than she paid for it is called a(n)
A. coupon payment. B. economic profit. C. dividend. D. realized capital gain.
Matt has decided to purchase his textbooks for the semester. His options are to purchase the books online with next day delivery at a cost of $175, or to drive to campus tomorrow to buy the books at the university bookstore at a cost of $170. Last week he drove to campus to buy a concert ticket because they offered 25 percent off the regular price of $16. The benefit to Matt of buying his books at the university bookstore instead of online is:
A. $9 B. $175 C. $5 D. $170
Toot Sweets Bakery sells freshly baked muffins from 6.30 am at $1.20 per muffin. By 4 pm, the remaining muffins are marked down to $0.60 each. Which of the following statements is true?
A) Toot Sweets is trying to minimize its loss.
B) Toot Sweets engages in price discrimination; a higher price for those who cannot wait and a lower price for those willing to wait until 4 pm.
C) Toot Sweets has underestimated the demand for its muffins.
D) Toot Sweets is trying to prevent the opportunity to make arbitrage profit.