Using a change in supply and/or demand, explain the following phenomena:
a. All else constant, gasoline prices are higher in summer than winter months.
b. At the same time that the quality of personal computers has been increasing, the price of personal computers has been falling.
a. Demand for travel is higher in summer than winter months, which causes the demand for gasoline to be higher as well.
b. Supply (and quality) have increased as a result of technology improvements, while demand has not increased as rapidly, putting downward pressure on price.
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Consider the following statements:
a. Soda drinkers purchase more soda from a grocery store that sells soda at a lower price than other rival grocery stores in the area. b. Homeowners do not take steps to increase security even though they believe it is more costly to allow burglaries than to install security monitoring equipment. c. Manufacturers produce less of a particular cell phone when its selling price rises. Which of the above statements demonstrates that economic agents respond to incentives? A) a only. B) b only. C) c only. D) a and b. E) a, b, and c.
While increases in population are often seen as a problem by some observers can you think of a way in which an increase in population can be a positive factor?
What will be an ideal response?
A prisoner of war camp seems a likely place for "cigarette money," because ________
A) nearly all prisoners smoke cigarettes B) of the absence of better alternatives C) cigarettes are abundant and easy to count D) the guards can enforce the practice of accepting cigarettes as a medium of exchange E) cigarettes retain their value over time
What is an example of specific job training?
A. learning how to use the firm's payroll system B. learning word-processing skills C. passing the CPA exam D. obtaining a GED E. becoming stronger