Daniella notices that the price of a Lyft home from work today is $14, though it is usually $9. She chooses to take the bus instead, even though the bus is always crowded and it takes her three times as long to get home. This is an example of the ______ effect.
a. income
b. substitution
c. marginal utility
d. endowment
b. substitution
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Use the following table to answer the question below. Dave's Production Possibilities ScheduleSimon's Production Possibilities SchedulePounds of Green BeansPounds of CornPounds of Green BeansPounds of Corn0160080201204060408080406040120208001600Assume Dave consumes 40 pounds of green beans and 80 pounds of corn without trade. Also, assume that Simon consumes 80 pounds of green beans and 40 pounds of corn without trade. Suppose Simon and Dave specialize and that the terms of trade are 1 pound of green beans for 1 pound of corn. If Simon sells Dave 80 pounds of green beans, then the gains from trade for Simon are ________ pounds of green beans and ________ pounds of corn with trade and specialization.
A. 0, 40 B. 40, 0 C. 20, 20 D. 40, 40
Which is one of the conditions that must be realized before a seller finds that price discrimination is workable?
A. The buyer must be able to resell the product at a higher price to other consumers. B. The product must be a service because demand is more elastic for services. C. The seller must be able to segregate buyers based on a willingness to pay. D. The demand for the product is perfectly elastic so any price can be charged for the product.
The Fed acquired the authority to do which of the following during the economic crisis of 2008?
What will be an ideal response?
Fixed costs faced by farmers typically include the following, except:
A. Family labor B. Fertilizer C. Property taxes D. Interest and rent payments