If the price of margarine falls, the demand for butter will
A) remain unchanged.
B) increase.
C) decrease.
D) rise at first and then fall.
C
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The redistribution of income creates the big tradeoff, which is a tradeoff between ________
A) income and wealth B) equity and efficiency C) rich and poor D) Supplementary Security Income and the Food Stamp program
Studies show that the income elasticity of demand for wine is 5.03 and the income elasticity of demand for spirits is 1.21. This indicates that
A) wine is a luxury good and spirits are necessities. B) wine and spirits are luxury goods. C) wine is a luxury good and spirits are inferior goods. D) wine and spirits are highly price elastic.
Product differentiation always exists in
A) perfect competition. B) monopolistic competition. C) oligopoly. D) monopoly.
Unit excise taxes imposed on gasoline are
A. shared equally between the producer and the consumer. B. largely paid by the producers because gasoline is a necessity. C. largely paid by consumers because they are not very responsive to price changes. D. paid by the wholesalers of these products.