At a price of $5, Tyrone buys 10 units of a product; when the price increases to $6, Tyrone buys 8 units. Which of the following is correct about Tyrone's behavior?
a. Tyrone's demand has decreased.
b. Tyrone's demand has increased.
c. Tyrone's quantity demanded has decreased, and his demand has not changed.
d. Tyrone's quantity demanded has increased, and his demand has increased.
e. Tyrone's demand has increased, and his quantity demanded has decreased.
C
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Refer to Figure 4-6. What is the value of consumer surplus after the imposition of the price floor?
A) $1,500 B) $2,700 C) $4,500 D) $5,700
Suppose losses cause industry Z to contract, and as a result, the prices of inputs used intensively in the industry's production process fall. We know, as a result, that industry Z is: a. an increasing cost industry
b. a constant cost industry. c. a decreasing cost industry. d. experiencing diminishing returns.
Social Security contributions are part of
A. indirect taxes. B. reverse taxes. C. payroll taxes. D. excise taxes.
Define the "consumption function."
What will be an ideal response?