Assuming competitive markets with typical supply and demand curves, which of the following statements is correct?
A. An increase in supply with a decrease in demand will result in an increase in price.
B. An increase in supply with no change in demand will result in an increase in price.
C. An increase in supply with no change in demand will result in a decline in sales.
D. An increase in demand with no change in supply will result in an increase in sales.
Answer: D
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The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell. The slope between points C and D equals
A) 8. B) 4. C) 2. D) 1. E) 12.
Between 1860 and 1910, value added by the top ten manufactures roughly
a. doubled. b. tripled. c. increased by 500% (a factor of five). d. increased by 1000% (a factor of ten).
Carlos has been invited to go skiing for the afternoon with his friends. It will cost $40 for a lift ticket. It is likely Carlos will:
A. overvalue the benefit of skiing. B. undervalue the opportunity cost of his afternoon. C. find it difficult to place a value on what he might do instead of skiing. D. All of these are true.
The price of coffee rose 50 percent and coffee sales fell 25 percent. Doughnut sales also fell 25 percent. From this information we can conclude that
a. demand for coffee is inelastic. b. coffee and doughnuts are complements. c. the cross elasticity of demand is minus 0.5 percent. d. All of the above are correct.