Refer to the above table. The price of a hamburger is $2, the price of a movie is $10, and the consumer has $44. What is the change in quantity demanded of hamburgers if the price of a hamburger decreases to $1?
A. Quantity demanded increases by 2 hamburgers.
B. Quantity demanded increases by 4 hamburgers.
C. Quantity demanded increases by 1 hamburger.
D. Quantity demanded increases by 3 hamburgers.
Answer: A
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A firm will shut down in the short-run if
a. P>AVC
b. P
If doubling the quantity of inputs more than doubles the quantity of outputs, the firm is experiencing
a. increasing returns to scale. b. decreasing returns to scale. c. constant returns to scale. d. increasing costs per unit of output.
Any basket of goods that is missing food and energy items is:
A. called the retail sales index. B. missing a small portion of a typical consumer's basket. C. a useless calculation. D. missing a large portion of consumption.
Refer to the information provided in Figure 23.4 below to answer the question(s) that follow.
Figure 23.4Refer to Figure 23.4. If income is Y1, aggregate consumption is the smallest when the aggregate consumption function is
A. C3. B. C2. C. C1. D. cannot be determined from the figure.