If supply is constant, a decrease in the demand for potato chips will cause:
A.) A decrease in equilibrium price and a decrease in equilibrium quantity.
B.) An increase in equilibrium price and an increase in equilibrium quantity.
C.) A decrease in equilibrium price and an increase in equilibrium quantity.
D.) An increase in equilibrium price and a decrease in equilibrium quantity.
A.) A decrease in equilibrium price and a decrease in equilibrium quantity.
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Consider a tragic and heart-wrenching case in which a cancer patient is told he needs chemotherapy in order to live three more years at best, but the patient's final three years will be filled with all the terrible side-effects of the treatment
Without it, he will surely die within a year, but his quality of life would be a better. Suppose he chooses to quit chemotherapy. The economic way of thinking would therefore conclude A) the patient made the wrong choice. B) the doctors were absolutely right—the patient needs chemotherapy. C) it is better to live longer than it is to die sooner. D) all of the above are true. E) none of the above is true.
If you are earning $20,000 this year and the CPI is 165, your real income in base year prices is
A) $121.21. B) $12,121.21. C) $20,000. D) $16,500. E) $33,000.
When marginal cost curve is below an average cost curve, average cost is:
A. not varying with output. B. increasing with output. C. declining with output. D. None of the statements is correct.
A natural monopolist that is price-regulated at the marginal cost output level will:
a. be producing at the same output and price that an unregulated natural monopolist would choose. b. produce the optimal level of output and earn an economic profit greater than zero. c. produce the optimal level of output and earn a normal profit. d. eventually incur losses if MC is less than ATC.