Sam, a fish wholesaler, entered into a contract with a department store to supply herring at a price of $2.50 per pound for a year. When a hurricane closed most fisheries Sam increased the price to $3.25 per pound and refused to sell at the old price. Sam's behavior is an example of opportunism
Indicate whether the statement is true or false
T
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Assume that you allocate your income to calzones and juice and that you have not yet spent your entire budget. If the marginal utility of a fourth calzone is 100 and the marginal utility of a third glass of juice is 50, you would
a. eat a fourth calzone because it has higher marginal utility b. drink a third glass of juice c. drink a third glass of juice if its price is lower than the price of calzones d. drink a third glass of juice if its price is less than half the price of the calzone e. drink a third glass of juice because it has lower marginal utility
Nominal GDP will definitely increase when
a. prices increase and output increases. b. prices increase and output decreases. c. prices decrease and output increases. d. All of the above are correct.
Assume we have a simplified banking system in balance-sheet equilibrium. Also assume that all banks are subject to a uniform 10 percent reserve requirement and checkable deposits are the only form of money. A commercial bank receiving a new checkable deposit of $100 would be able to extend new loans in the amount of:
A. $10. B. $90. C. $100. D. $1,000.
In the graph below, what is the price elasticity of supply (using the midpoint formula) between points A and B above?
A. 1
B. 3
C. 2
D. 1/3