Related to the Economics in Practice on page 67: Consumption of quinoa has been on the rise. A grain called teff has been referred to as quinoa's twin and is often consumed in place of quinoa. This would make teff and quinoa ________, and an increase in the price of quinoa should ________ the demand for teff, ceteris paribus.
A. complements; decrease
B. substitutes; increase
C. complements; increase
D. substitutes; decrease
Answer: B
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Air fares are generally lower on Tuesdays and Wednesdays each week. What is a likely explanation for this occurrence?
A. Supply is relatively variable, and lower demand on these days leads to a lower equilibrium price. B. Demand is relatively variable, and lower supply leads to a lower equilibrium price. C. Lower levels of both supply and demand on these days lead to a lower equilibrium price. D. Supply is relatively fixed, and lower demand on these days leads to a lower equilibrium price. E. Demand is relatively fixed, and lower supply leads to a lower equilibrium price.
A firm that faces a high-demand period followed by a low-demand period must determine all of the following for peak-load pricing except which one?
A) short-term off-peak quantity B) long-term off-peak price C) short-term peak quantity D) short-term peak price
Assuming fixed factor prices, the short-run industry supply curve for a perfectly competitive industry is equal to the sum of the
A) AVC curves above minimum AVC. B) ATC curves above minimum ATC. C) MC curves above minimum AVC. D) MC curves above minimum ATC.
Using the information in the table shown, what is the 1999 salary in 2009 dollars?
A. $174,136
B. $132,692
C. $105,292
D. $170,844