In the market for used cars, a surplus of used cars would, ceteris paribus:
Answer: Put downward pressure on the price of used cars
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Suppose that, at a given production plan, the marginal product of labor is 6 and the marginal product of capital is 3. In a graph with labor on the horizontal and capital on the vertical axis, this implies that the technical rate of substitution at that production plan is
A. -1/2 B. -2 C. -18 D. None of the above
Isabella buys a new camera for $80 . She receives consumer surplus of $35 on her purchase if her willingness to pay is
a. $35. b. $45. c. $80. d. $115.
According to the text, today's Lorenz curve is
A. a vertical line. B. less bowed than in 1929. C. a straight line. D. more bowed than in 1929.
A firm can fund an expansion of its operations by
A) issuing bonds. B) buying stock. C) paying dividends. D) loaning money.