Kim's demand curve for sodas:
A. assumes that the only variables that change are the price of sodas and the quantity of sodas demanded by Kim.
B. shows the quantity of sodas Kim consumes as her preference for sodas change.
C. makes no assumptions about Kim's preference for sodas.
D. assumes that the only variable that changes is Kim's income.
Answer: A
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Which of the following would tend to increase the demand for college textbooks?
A) A lower price of college textbooks B) An increase in the number of enrolled college students C) A significant increase in college tuition D) Both A and B
In a competitive market with high cost and low cost consumers (where firms are unable to tell consumer types apart), any screening costs incurred by firms will be passed on to low cost consumer but not to high cost consumers.
Answer the following statement true (T) or false (F)
Lizzie's budget line is shown in the figure above. If the price of a magazine falls, the budget line
A) shifts rightward and its slope does not change. B) shifts leftward and its slope does not change. C) becomes flatter. D) becomes steeper.
The nominal price of a desk increased from $20 in 2005 to $65 in 2016. The Consumer Price Index (CPI) was 125 in 2005 and 250 in 2016. We can say that
A) the real price of a desk increased over time. B) the real price of a desk fell over time. C) the real price of a desk has not changed over time. D) There is not enough information to determine the real price of a desk.