If Frank has been consuming 10 tacos per week at a consumer optimum, and the price of tacos falls, how will Frank respond?
A) He will save more income.
B) He will buy more of everything.
C) He will buy more tacos.
D) He will buy more of everything except tacos.
Answer: C
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Price leadership:
A) has rarely occurred in U.S. history. B) is always illegal in the United States. C) is usually the result of a dominant firm in the industry. D) usually results in the smaller firms in the industry incurring economic losses.
The bottom 80 percent of the families in the United States receive approximately ________ percent of total income.
A. 90 B. 20 C. 50 D. 10
Firms who are attempting to engage in price discrimination will offer customers with a ________ demand a higher price and customers with a(n) ________ demand a lower price.
A. lower; higher B. normal; inferior C. less elastic; more elastic D. more elastic; less elastic
For a normal good, an increase in consumer income will lead to I. a movement down the demand curve II. a rightward shift in the demand curve III. a reduction in supply
A) I only. B) II only. C) III only. D) both II and III.