Roy just got a big promotion at work which includes a sizable pay increase. Roy's demand for Ramen Noodles, an inferior good, will likely:
A. decrease, and his demand curve will shift to the right.
B. decrease, and his demand curve will shift to the left.
C. increase, and his demand curve will shift to the right.
D. decrease, causing a movement down along his demand curve.
B. decrease, and his demand curve will shift to the left.
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Statistical discrimination
a. arises from employer prejudice b. arises from consumer prejudice c. does not involve prejudice by employers or consumers d. is illegal in the United States e. tends to reduce the profits of profit-maximizing firms
The demand for microwaves in a certain country is given by: D = 8,000 -30P, where P is the price of a microwave. Supply by domestic microwave producers is: S = 4,000 + 10P. If this economy opens to trade while the world price of a microwave is $50, how many microwaves will be imported or exported?
A. 3,000 exported B. 1,000 imported C. 2,000 exported D. 2,000 imported
If your income and the price level both double, and you think you now have more real income, you are suffering from
A. injections. B. money illusion. C. diminishing marginal expectations. D. leakages.
Refer to the graph shown. Initially, the market is in equilibrium with price equal to $3 and quantity equal to 100. Government imposes a tax on suppliers of $1 per unit. The effect of the tax is to:
A. give government tax revenues of $400. B. give government tax revenues of $100. C. reduce producer surplus by $400. D. reduce producer surplus by $100.