"I like ice cream, but after eating homemade ice cream last night, I want to have something else for dessert today." This statement most clearly reflects
a. the budget constraint.
b. consumer irrationality.
c. the second law of demand: price elasticity increases with time.
d. the law of diminishing marginal utility.
D
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A learning curve relates ________ to ________ and is a case of ________ returns
A) unit cost; cumulative production; dynamic increasing returns B) output per time period; long-run marginal cost; dynamic increasing returns C) unit cost; cumulative production; dynamic decreasing returns D) output per time period; long-run marginal cost; dynamic decreasing returns E) labor productivity; education; increasing marginal returns
An example of peak pricing is charging
A. more for long-distance phone calls in the daytime. B. less for electricity at night. C. more for public transportation in rush hours. D. All of the above are true.
Which of the following scenarios shows an increasing-cost industry?
a. As the demand for cotton shirts drops, the price of cotton suitable for making this product rises. b. As the demand for computers rises, the price of microchips for making this product drops. c. As the demand for raspberries rises, the price of land suitable for growing this crop rises. d. As the demand for wooden rulers drops, the price of lumber for making this product stays constant.
Productive efficiency implies that
What will be an ideal response?