Describe the changes in the variables that will cause the demand for a product to increase, shifting the demand curve to the right
What will be an ideal response?
an increase in income if the product is a normal good; a decrease in income if the product is an inferior good; an increase in the price of a substitute good; a decrease in the price of a complementary good; an increase in population; an increase in consumer preference for the good; an increase in the expected future price of the good
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The marginal utility per dollar that Harold Stratton receives from oranges is greater than the marginal utility per dollar Harold receives from pears. To maximize his utility, what should Harold do?
A) He should buy fewer pears and more oranges. B) He should buy fewer oranges and more pears. C) He should reduce his consumption of both oranges and pears so that he can buy a greater variety of goods. D) He should acquire more income so that he can afford to buy more oranges and pears.
The above figure shows Bob's utility function. He currently has $100 of wealth, but there is a 50% chance that it could all be stolen. What is the most Bob would pay for insurance that would replace his $100 should it be stolen?
A) $30 B) $50 C) $70 D) $75
Which of the following were discovered in a Federal Trade Commission Study of 8,000 new and used Corvettes sold on eBay between 2001 and 2003?
a. The last-minute bids on new Corvettes were higher than that on used ones. b. The median winning bid on new Corvettes exceeded that on used ones. c. The median winning bid on used Corvettes exceeded that on new ones. d. The last-minute bids on used Corvettes were higher than that on new ones.
Diseconomies of scale imply that the average total cost curve is downward-sloping in the long run.
Answer the following statement true (T) or false (F)