Which of the following would cause the equilibrium price of white bread to decrease and the equilibrium quantity of white bread to increase?
A) a decrease in the price of flour
B) an increase in the price of flour
C) an increase in the price of rye bread, a substitute for white bread
D) an increase in the price of butter, a complement for white bread
Answer: A
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The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. What is the marginal social cost of producing the 200th dozen doughnuts each day?
A) $10.00 per dozen B) $8.00 per dozen C) $6.00 per dozen D) $4.00 per dozen
Refer to Table 9-3. Assume the market basket for the consumer price index has three products — Cokes, hamburgers, and CDs — with the following values in 2011 and 2016 for price and quantity: The Consumer Price Index for 2016 equals
A) 75. B) 93. C) 108. D) 121.
In monopolistic competition, the number of firms
a. is so large that the actions of any one firm have little effect on the others. b. is so small that the actions of any one firm have little effect on the others. c. is so large that the actions of any one firm have a substantial effect on the others. d. is so small that the actions of any one firm have a substantial effect on the others.
It is not optimal to have equal incomes.
Answer the following statement true (T) or false (F)