Which statement is true regarding the a change in demand and a change in quantity demanded?
A. If a good's price goes down, then demand for the good will decrease
B. If demand increases, then the demand curve will shift to the left
C. it a good's price goes down, then quantity demanded will increase
D. If price rises and quantity demanded decreases then the demand curve will shift to the left
Answer; C. it a good's price goes down, then quantity demanded will increase
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If consumption increases by $9 when disposable income increases by $10, the marginal propensity to consume (mpc) equals:
A. 0.1. B. 1.0. C. 9.0. D. 0.9.
The elasticity of supply measures the sensitivity of
A) supply to changes in costs. B) quantity supplied to quantity demanded. C) quantity supplied to a change in price. D) price to changes in supply.
Suppose the domestic market demand function in a certain market where Q is measured in thousands of units is Qd = 20 - 2.5P, and the domestic market supply function is Qs = 2.5P - 7.5. Suppose further that the world price for the good in question is $3.40 per unit. Under conditions of free trade, how much consumer surplus will there be?
A. $26,450 B. $26,650 C. $52,900 D. $53,300
The loss-minimizing output for the perfectly competitive firm occurs at the point at which
A) TR - MR = minimum. B) TR - TC = maximum. C) MR = MC. D) TC - ATC = maximum.