Figure 3-6
In , suppose D1 and S1 indicate initial conditions in the market for ice cream. Which of the following changes would tend to cause a shift from S1 to S2 in the market for ice cream?
a.
an increase in the price of sugar, an ingredient used to produce ice cream
b.
a decrease in the price of frozen yogurt, a substitute for ice cream
c.
abnormally hot weather that temporarily increases consumer desire for ice cream
d.
a decrease in the price of milk, an ingredient used to produce ice cream
d
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Which figure above shows the effect of a decrease in the number of pizza sellers?
A) Figure A B) Figure B C) Figure C D) Figure D E) Both Figure B and Figure C
Lizzie's budget line is shown in the figure above. If the price of a magazine rises, Lizzie's real income in terms of magazines books ________ and her real income in terms of cookies ________
A) increases; does not change B) decreases; does not change C) decreases; increases D) increases; decreases
Refer to Figure 9.2. At price 0H and quantity Q1, the deadweight loss is
A) DGC. B) BDC. C) BGC. D) 0FGQ1. E) none of the above
You produce stereo components for sale in two markets, foreign and domestic, and the two groups of consumers cannot trade with one another. You will charge the higher price in the market with the
A) lower own price elasticity of demand (more inelastic demand). B) higher own price elasticity of demand (more elastic demand). C) larger teenage population. D) greater consumer incomes.