Refer to Scenario 3.3 below to answer the question(s) that follow.SCENARIO 3.3: -Mustard and mayonnaise are substitutes. -Mustard and relish are complements. -Mustard is a normal good. -During the summer, about 50% of all mustard was recalled by manufacturers and removed from store shelves.Refer to Scenario 3.3. As a result of the recall, you would expect that
A. the price of mustard would increase and both the quantity of mustard supplied and the quantity of mustard demanded would increase.
B. the price of mustard would increase, the supply of mustard would increase, and the quantity demanded of mustard would decrease.
C. the supply of mustard would decrease, the price of mustard would increase, and the demand for mustard would decrease.
D. the supply of mustard would decrease, the price of mustard would increase, and the quantity demanded of mustard would decrease.
Answer: D
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If the U.S. government determines that the cost of feeding an urban family of four is $7,500 per year, then the official poverty line for a family of that type is
a. $7,500. b. $15,000. c. $22,500. d. $30,000.
Which product will have the most elastic demand curve?
A. Fresh fruit B. Gasoline C. Electricity D. Medical services
Use the following graph to answer the next question.
If the industry operates as a pure monopoly, the profit-maximizing quantity of output would be ________.
A. a level that is not labeled in the graph B. 195 C. 160 D. 90
In the aggregate production function, the symbol "A " represents an index of how efficiently the economy transforms capital and labor into real GDP. "A" measures the influence
A) of any factor that determines real GDP. B) of the quantities of capital and labor that determine real GDP. C) of any factor that determines real GDP other than the quantities of capital and labor. D) of the quantities of capital and labor that determine real GDP, holding other factors constant.