The fact that some people can afford to live in beautiful homes while others are homeless, is most directly an example of an economy facing the ________ part of one of the two big economic questions
A) "for whom"
B) "when"
C) "how"
D) "why"
A
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Oscar makes purchases of an existing product (X) such that the marginal utility of the last unit he consumes is 10 utils and the price is $5. He also tries a new product (Y) and the marginal utility of the last unit he consumes is 8 utils and the price is $1. The equal marginal principle suggests that Oscar should
A. increase his consumption of product Y and decrease his consumption of product X. B. increase his consumption of product X and increase his consumption of product Y. C. decrease his consumption of product Y and decrease his consumption of product X. D. increase his consumption of product X and decrease his consumption of product Y.
Assume that there is a shortage of lobster and that for whatever reason prices have not risen to choke off the excess demand
Instead, the government has exhorted people to voluntary refrain from lobster consumption to "maintain a balance between supply and demand." Assume that the temporary public service announcements are "effective" and the public reduces its consumption of lobster. Explain using supply and demand analysis what should happen to the equilibrium quantity of lobster and its equilibrium price. Why would this plan not have much of an impact on the lobster market in the long run?
If firms expect prices to be higher in the future and the product is not perishable, then
A. the current supply curve shifts to the left. B. producers produce more output to hold back for the future. C. the current supply curve shifts to the right. D. none of the statements associated with this question are correct.
When advertisers try to build brand loyalty they are trying to make their product more _______.
Fill in the blank(s) with the appropriate word(s).