Suppose you have a money income of $10, all of which you spend on Coke and popcorn. In the diagram, the prices of Coke and popcorn respectively are:
A. $.50 and $1.00.
B. $1.00 and $.50.
C. $1.00 and $2.00.
D. $.40 and $.50.
A. $.50 and $1.00.
You might also like to view...
Which of the following directly creates growth in labor productivity?
I. Growth in capital per hour of labor II. Technological change III. Population growth A) I only B) II only C) I and II D) I and III
Suppose the domestic market demand function in a certain market where Q is measured in thousands of units is Qd = 20 - 2.5P, and the domestic market supply function is Qs = 2.5P - 7.5. Suppose further that the world price for the good in question is $3.40 per unit. How much deadweight loss would be caused by a $1.20 tariff on imported units of this good?
A. $3,200 B. $3,600 C. $5,400 D. $3,000
A decrease in supply will occur when
A. the supply curve shifts upward to the left. B. the supply curve shifts downward to the right. C. the demand curve shifts downward to the left. D. the demand curve shifts upward to the right.
An open economy is an economy that has
A) its own stock market. B) governmental regulations regarding the number of hours retail establishments must remain open on a daily basis. C) interactions in trade or finance with other economies. D) governmental regulations regarding public information that is included in corporate finance reports.