An increase in income results in an outward shift of an indifference curve
Indicate whether the statement is true or false
FALSE
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Sarah and David both have linear demand curves for lemonade. Sarah's demand is more elastic than David's. At the current price of $0.50 per glass, they both choose to buy 5 glasses. A change in the price of lemonade to $0.75 per glass will
A) decrease Sarah's consumer surplus more than David's. B) decrease David's consumer surplus more than Sarah's. C) increase Sarah's consumer surplus more than David's. D) increase David's consumer surplus more than Sarah's.
Which of the following is an equilibrium condition for the goods market in the short-run? # randomize
A. measured savings equal measured investment B. Desired savings equal desired investment C. Money demand equals money supply D. Consumption equals savings
One of the main differences between production processes among different parts of the world has to do with the quality of capital. Many development economists point out the fact that high-income countries usually have access to more and better capital than less-developed counties. What would be the effect of this difference in terms of isoquants used by high-income countries versus the isoquants used by low-income countries? Use an isoquant map in order to illustrate your answer.
What will be an ideal response?
At the point where the demand and supply curves for a product intersect:
A. the selling price and the buying price need not be equal. B. the market may, or may not, be in equilibrium. C. either a shortage or a surplus of the product might exist, depending on the degree of competition. D. the quantity that consumers want to purchase and the amount producers choose to sell are the same.