Chocolate prices are determined by the inter-action of supply and demand. Any significant decrease in input costs (costs of production) for this type of product will, all other things remaining the same:
(a) Shift the supply curve to the right.
(b) Decrease the equilibrium price.
(c) Shift the demand curve for chocolate to the left.
(d) Cause both (a) and (b) above.
Answer: (d) Cause both (a) and (b) above.
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An oligopoly is a market
a. with few buyers. b. with one buyer. c. dominated by a few sellers. d. under the control of a few politically powerful individuals.
The real-income effect is likely to be greater when
A. the marginal utility per dollar spent on the last unit is high. B. the good is an expensive good. C. the substitution effect is not very large. D. the marginal utility of the last unit is high.
The Social Security Administration refers to the percentage of people over age 65 as the
A. recipient ratio. B. beneficiary ratio. C. old-age ratio. D. dependency ratio.
Given the information in Scenario 14.1, what is the marginal revenue product of labor?
A) 0.5L-1/2 B) 2L-1/2 C) 12L-1/2 D) 24L-1/2