Jane is willing to pay $4 for the first cup of coffee a day, $2.50 for the second cup, and $1 for the third cup, after which she won't buy any coffee. The price of a cup of coffee is $2.40. How many cups of coffee per day will Jane buy?
A) 1
B) 2
C) 3
D) None
B
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Refer to Table 11.1. If the marginal propensity to consume decreases to 0.05 (MPC = 0.05), what is the new equilibrium level of output?
A) 2,366.67 B) 3,166.67 C) 3,550.00 D) 4,750.00
If the demand for a good is inelastic, an increase in its price will result in a decrease in total revenue
a. True b. False Indicate whether the statement is true or false
When the wage rate rises, a worker chooses to replace some leisure hours with work hours, even if he would remain equally well off. This phenomenon is known as
a. compensating differential. b. the income effect. c. the substitution effect. d. intertemporal substitution.
Which of the following measures the changes in the prices of a "market basket" of some 300 goods and services purchased by typical urban consumers?
A. The GDP Price Index B. The Consumer Price Index C. The Retail Trade survey D. The Wholesale Price Index