Claudia spends her income on two goods, Blu-ray rentals and chewing gum. She considers both goods to be normal goods. If Claudia's income stays constant and the relative price of Blu-ray rentals increases, she will:
A. rent more Blu-rays and purchase less chewing gum.
B. rent more Blu-rays and purchase more chewing gum.
C. rent fewer Blu-rays and purchase more chewing gum.
D. rent fewer Blu-rays and purchase less chewing gum.
Answer: C
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In the DMP model, a decrease in matching efficiency
A) has no effect on vacancies. B) reduces the unemployment rate. C) increases labor market tightness. D) increases the size of the labor force.
The amount of output that a firm decides to sell has no effect on the market price in a competitive industry because
A) the market price is determined (through regulation) by the government B) the firm supplies a different good than its rivals C) the firm's output is a small fraction of the entire industry's output D) the short run market price is determined solely by the firm's technology E) the demand curve for the industry's output is downward sloping
Why do economists measure responsiveness of demand to price in percentage changes rather than in absolute changes?
Refer to the information provided in Table 6.3 below to answer the question(s) that follow. Table 6.3Dozens of Oysters per DayTotal UtilityMarginal Utility160?2104?3134?4152?5?8Number ofBeers per DayTotal UtilityMarginal Utility140?270?394?4114?5?14Refer to Table 6.3. Assume that a store is giving oysters and beers away for free. Consumers can have as many beers and oysters (by the dozen) as they want, but the food has to be consumed one unit at a time. If Tyler has already had one beer and two dozen oysters, then Tyler should
A. next consume a beer to maximize his utility. B. next consume a dozen oysters to maximize his utility. C. consume neither another beer nor another dozen oysters to maximize his utility. D. be indifferent between consuming the second beer or the third dozen oysters.