When firms enter a market, the supply increases and price:
A. falls and profits increase.
B. increases and profits decrease.
C. falls and profits decrease.
D. increases and profits increase.
Answer: C
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In the above figure, the shift in the demand curve from D to D1 can be the result of
A) a decrease in income if pizza is a normal good. B) a decrease in the price of a sub sandwich, a substitute for pizza. C) an increase in the price of soda, a complement to pizza. D) an increase in the number of teenagers, all of whom demand more pizza than do other age groups. E) new technology that increases the profit from producing pizza.
Gunther rents Nintendo games and videos. The marginal utility from his last Nintendo game is 10 and that from his last video is 5. Nintendo games rent for $2 each. Gunther's demand curve for games is shown in the figure above
How many videos a week does Gunther rent? A) 1 B) 2 C) 3 D) 4
Which of the following would not be considered a real variable in determining a real business cycle?
a. A change in technology b. A labor strike c. An increase in the money supply d. A change in tastes e. A substantial weather event
fConsider a course with 40 students....
Consider a course with 40 students, some of whom are confused after the professor explains a concept. The professor doesn't know whether students are confused, but will clarify the concept if one student asks a question. A student who asks a
questionlong dash—and
reveals his or her
confusionlong dash—loses
88
utils. When the professor clarifies the concept in response to a question, each confused student gets a benefit of
22
utilsutils.