Which statement shows consumer expectation affecting demand?
a. Mikayla buys a new skirt style that she saw in a fashion magazine.
b. Jacob's wages go up, so he buys an extra pair of basketball shoes.
c. The price of fuel containing ethanol drops, so gasoline sales decrease.
d. Emma buys 10 pounds of coffee because crops are failing in Kenya.
Ans: a. Mikayla buys a new skirt style that she saw in a fashion magazine.
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The price elasticity of demand for new stereos is –2 . Suppose a stereo store wishes to increase its sales by 15 percent. What should the firm do?
What will be an ideal response?
According to Keynes, the level of consumer expenditures was a stable function of
a. national income. b. gross income. c. disposable income. d. net income. e. None of the above
The opportunity cost of a resource
a. includes both explicit and implicit cost b. includes explicit cost only c. includes implicit cost only d. is equal to the market price of the resource e. is not related to the market price of the resource
The price of coffee fell from $1.97 per pound in December 2014 to $1.62 in December 2016. During that time the overall price level increased by 1 percent. What was the change in relative price in coffee during this period?
a. –$0.31 b. –$0.33 c. –$0.35 d. –$0.37