Refer to the information provided in Figure 6.5 below to answer the question(s) that follow.
Figure 6.5Refer to Figure 6.5. Molly's budget constraint is CD. Molly's income is $200, the price of a DVD is $7.50 and the price of a CD is $10. At point C, she is buying ________ DVDs and ________ CDs.
A. 0; 20
B. 40; 30
C. 20; 0
D. 20; 15
Answer: A
You might also like to view...
An inferior good or service is any good or service for which:
a. an increase in price causes an increase in the quantity demanded. b. a decrease in price causes an increase in demand. c. an increase in price causes a decrease in the quantity demanded. d. an increase in the amount consumed causes a decrease in marginal utility. e. an increase in income causes a decrease in demand.
Antitrust laws in general are used to
a. prevent oligopolists from acting in ways that make markets less competitive. b. encourage oligopolists to pursue cooperative-interest at the expense of self-interest. c. encourage frivolous lawsuits among competitive firms. d. encourage all firms to cut production levels and cut prices.
?The first step in estimating simultaneous equations models (SEMs) with panel data is to find instrumental variables for the endogenous variables in the transformed equation.
Answer the following statement true (T) or false (F)
Suppose that David buys the same number of energy drinks every weekend no matter what happens to the price of the energy drinks. What does this suggest about David's demand for energy drinks?
A. It is elastic. B. It is perfectly inelastic. C. It is unit elastic. D. It is not something that can be characterized without knowing the prices of the energy drinks.