Which of the following demonstrates the income effect of a price change?
a. Sales of smartwatches rise during tax season when many consumers have tax refunds to spend.
b. A store manager notes that most customers who buy a smartwatch do not purchase a second smartwatch, no matter how low the price is.
c. Sales of smartwatches rise after the company introduces a new model with high utility for consumers.
d. A store manager notes that when the price of the smartwatch rises, fewer consumers are interested in owning two of them.
d. A store manager notes that when the price of the smartwatch rises, fewer consumers are interested in owning two of them.
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Average labor productivity equals:
A. average production per year. B. total output. C. output per employed worker. D. output per person.
If the demand for gasoline becomes more elastic over time,
A. the demand curve will shift out. B. the demand curve will become flatter. C. other things being equal, the equilibrium price of gasoline must fall. D. other things being equal, the equilibrium quantity of gasoline must fall.
After reading Governor Bradford's account, which is the most accurate statement, given his experience?
a. He considered the problems in the colony to be rooted in the "sine and corruption" of selfishness. b. He agreed with Plato that goods held in a "commone wealth" would make the people "happy and flourishing." c. That assigning private plots of land "made all hands very industrious." d. That assigning private plots of land "for this communitie" caused "much confusion and discontent."
For a given price, a decrease in demand will decrease consumer surplus
Indicate whether the statement is true or false