When income effects are small:
A. there is no difference between the uncompensated demand curve and the uncompensated demand curve.
B. the uncompensated demand curve will be relatively far from the compensated demand curve.
C. the compensated demand curve will intersect the uncompensated demand curve.
D. the uncompensated demand curve lies close to the compensated demand curve.
D. the uncompensated demand curve lies close to the compensated demand curve.
You might also like to view...
The benefit estimation method that uses surveys about hypothetical market conditions is
a. the averting expenditure method c. the travel cost approach b. the contingent valuation method d. the political referendum approach
Refer to Table 4-6. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the price of polo shirts decreases from $15 to $10
A) there will be a shortage of polo shirts. B) producer surplus will fall from $13 to $3. C) the marginal cost of producing the third polo shirt will increase to $25. D) consumers will buy no polo shirts.
The manager of a perfectly competitive firm has to decide:
A) the quantity of output the firm should produce. B) the price the firm should charge for its output. C) the quantity of output the firm should produce and the price it should charge. D) neither the quantity of output the firm should produce nor the price it should charge because the market makes both of these decisions.
When a firm or economy is operating efficiently, it is operating
a. outside its production possibilities frontier. b. inside its production possibilities frontier. c. on its production possibilities frontier. d. at the intersection of the production possibilities frontier and the vertical axis. e. at the intersection of the production possibilities frontier and the horizontal axis.