According to economic theory, which of the following would most likely cause the demand curve for hamburgers to decrease?
a. a drop in the price of hot dogs
b. an increase in the price of hamburgers
c. a drop in the price of hamburgers
d. a technological advance that reduces the cost of making frozen hamburger patties.
A
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Assume the supply function for good X can be written as Qs = -100 + 27Px - 5Py - 1.8W, where Px = the price of X, Py = the price of good Y, and W = Wage index for workers in industry X. According to this equation:
A) X and Y are substitutes in production. B) X and Y are complements in production. C) a decrease in wages would cause a decrease in the quantity supplied at each price. D) each one unit increase in price causes quantity supplied to increase by 73 units.
In the Cournot model, if the products are differentiated,
A) this reduces the pressure of one firm's decisions on the other. B) this increases the pressure of one firm's decisions on the other. C) there is no difference between this model and one with homogeneous goods. D) marginal costs are necessarily different.
To evaluate the potential impact of introducing the hybrid Prius auto into the U.S. market, Toyota Motor Corporation would use:
What will be an ideal response?
Which of the following is an example of a durable good?
a. a chocolate bar b. a sewing machine c. a breakfast cereal d. a bottle of aspirin