State the law of demand and explain why the other-things-equal assumption is critical to it
Please provide the best answer for the statement.
The law states that, other things being equal, as price increases, the corresponding quantity demanded falls. Restated, there is an inverse relationship between price and quantity demanded with everything else held constant. The other-things-equal assumption refers to constant prices of related goods, income, tastes, and other things that affect demand besides price. The law of demand only looks at the relationship between price and quantity demanded.
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The law of supply states that, other things equal, when the price of a good falls, the quantity supplied falls as well
a. True b. False Indicate whether the statement is true or false
A goal of market-based reforms of the health care system is to give patients an incentive to pay more attention to the prices of medical services. This would tend to ________ economic efficiency by ________ the costs of medical services
A) increase; increasing B) increase; decreasing C) decrease; increasing D) decrease; decreasing
Isabella wishes to buy gasoline and have her car washed. She finds that if she buys 9 gallons of gasoline at $1.50 per gallon, the car wash costs $1, but if she buys 10 gallons of gasoline, the car wash is free. For Isabella, the marginal cost of the tenth gallon of gasoline is
a. zero. b. 50 cents. c. $1. d. $1.50.
Refer to Scenario 9.4 below to answer the question(s) that follow. SCENARIO 9.4: Sponsors invest $100,000 in a new deli on the promise that they will earn a return of 10% per year on their investment. The deli sells 52,000 sandwiches per year. The deli's fixed costs include the return to investors and $42,000 in other fixed costs. Variable costs consist of wages ($1,000 per week) plus materials, electricity, etc. ($2,000 per week). The deli is open 52 weeks per year.Refer to Scenario 9.4. The annual total costs of the deli are
A. $42,000. B. $52,000. C. $156,000. D. $208,000.