Show graphically the effect of technological advance on the price of music downloads. In a separate graph show what happens to the price of CDs as a secondary effect of the new download technology
Figure 4-27
The first graph shows a rightward shift of the supply of downloads as a result of change in technology, so that the price of downloads falls while equilibrium quantity increases (Figure 4-27). This causes a decrease in the demand for CDs, reducing price and quantity at equilibrium.
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Refer to the inequality below. The marginal utility per dollar spent on good X is less than the marginal utility per dollar spent on good Y. According to the rule of equal marginal utility per dollar spent, what can a consumer do to increase total utility from consumption of goods X and Y?
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow. Figure 2.4According to Figure 2.4, as the economy moves from Point D to Point B, the opportunity cost of hybrid cars, measured in terms of motorcycles,
A. initially increases, then decreases. B. increases. C. remains constant. D. decreases.
Refer to the information provided in Figure 9.3 below to answer the question(s) that follow. Figure 9.3Refer to Figure 9.3. This firm's ________ point corresponds to point B.
A. profit maximizing B. profit minimizing C. shutdown D. break even
Classical economists tend to
A) support Say's law. B) see unemployment as a persistent economic problem. C) reject the equality of savings and investment. D) believe in Keynesian economics.