The statement "other things being equal" in the law of demand means all of the following remain constant EXCEPT
A) consumer income.
B) the price of the good concerned in the law of demand.
C) the prices of substitutes.
D) tastes and preferences.
B
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Refer to Reducing Long-Run Labor Usage. The substitution effect of the wage change is the movement from point X to
The following questions refer to the accompanying diagram, which shows a firm reducing its long-run labor usage from L0 to L1 in response to an increase in the wage rate.
a. point A.
b. point B.
c. point C.
d. point D.
If the monopoly's demand curve intersects the AVC curve at minimum AVC, the firm will shut down
Indicate whether the statement is true or false
Consumer choice theory generally concludes that is based on the hypothesis that each consumer wants to
A. maximize her total utility. B. maximize her marginal utility. C. minimize the rate at which her marginal utility diminishes. D. minimize the percentage of her consumption diverted to inferior goods.
The paradox of planning is that it can:
a. Both create and relieve stress b. Produce anxiety c. Provide economic supply and demand d. Be only a short-term fix