An individual's demand curve for a good is derived by
a. varying the income level and observing the resulting total utility derived from both goods
b. varying the price of one good and observing the resulting quantities demanded of the other good
c. varying the prices of both goods and observing the changes in quantities demanded of both goods
d. shifting the budget line to the left and calculating the loss in total utility
e. varying the price of one good and observing the resulting quantities demanded of that good
E
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Which of the following is true of bureaus?
a. They are highly sensitive to consumer feedback. b. They create laws to govern the functioning of an economy. c. They control the money supply in the economy. d. They implement the laws created by the government.
Refer to the table below. What is the profit-maximizing total quantity for Just Juice to produce?
Just Juice produces whole fruit juice that it sells in single bottles. Just Juice is a multi-plant firm with market power. The above table summarizes the total marginal cost of production at various output levels in Just Juice's two plants with the corresponding marginal revenue (dollars per bottle) and market demand (price per bottle).
A) 530
B) 955
C) 850
D) 1,100
Disposable income is defined to be:
A. total income minustaxes. B. total income plus taxes. C. total income minus depreciation. D. All of these are true.
The supply curve for motor oil is the typical upward-sloping straight line, and the demand curve for motor oil is the typical downward-sloping straight line. When motor oil is taxed, the area on the relevant supply-and-demand graph that represents the deadweight loss is
a. larger than the area that represents consumer surplus in the absence of the tax. b. larger than the area that represents government's tax revenue. c. a triangle. d. All of the above are correct.