Decreases in the price level will
What will be an ideal response?
raise consumption because real wealth increases
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In the equation S = Y - C, in order to interpret Y as disposable income, it is necessary to interpret S as ________ saving
A) private B) national C) government D) business
Price discrimination can increase both the monopolist's profits and society's welfare
a. True b. False Indicate whether the statement is true or false
John is trying to decide how to divide his time between his job as a stocker in the local grocery store, which pays $7 per hour for as many hours as he chooses to work, and cleaning windows for the businesses downtown. He makes $2 for every window he cleans. John is indifferent between the two tasks, and the number of windows he can clean depends on how many hours he spends cleaning in a day, as shown in the accompanying table.Time cleaning windows (hours/day)Total number of windows cleaned0017211314416517 What is John's opportunity cost of cleaning windows for an hour?
A. $8 B. $2 C. $7 D. $14
If turnips are an example of an inferior good, then a decrease in the demand for turnips could be brought about by a(n):
A. Increase in consumer incomes B. Decrease in consumer incomes C. Increase in the price of turnips D. Decrease in the price of some other product