Jane has noticed that she used to pay $2 for coffee and now she pays $2.50. Which of the following statements is TRUE?
A) The relative price of coffee has increased compared to tea.
B) The money price of coffee has increased.
C) The law of supply explains why the price of coffee has increased.
D) Jane will stop consuming coffee.
B
You might also like to view...
Can a firm's average variable costs be falling if they are less than the firm's marginal costs? Explain
Which of the following is true?
a. Investment in the stock market is a relatively foolproof method for an investor to earn a high rate of return during the next five years. b. Current stock prices already reflect information that is known with a high degree of certainty. c. Experts are able to predict changes in the direction of the broad stock market indexes with a high degree of accuracy. d. While changes in the prices of specific stocks are difficult to predict, it is relatively easy to predict the future direction of the broad stock market. e. Both c and d are true.
During times of high unemployment, colleges often observe an increase in enrollment even if tuition remains unchanged. Why?
A. Students go to college even when the net benefit is negative. B. The opportunity cost of attending college is higher when unemployment is high. C. The benefit of attending college is lower because college graduates are less likely to find jobs. D. The opportunity cost of attending college is lower when unemployment is high.
An incentive is a
A. concept that does not actually affect people's behavior. B. want. C. reward for desired behavior. D. need.