There is only one supermarket in Beverly Hills, California because
A) supermarkets can't compete effectively against residents in buying land.
B) supermarket owners are paying attention to sunk costs in their location decisions.
C) the demand for food is highly elastic in wealthy neighborhoods.
D) the demand for food is highly inelastic in wealthy neighborhoods.
E) wealthy people rarely do their own grocery shopping.
A
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Which of the following is true?
i. A rational choice is made on the margin. ii. Microeconomics is the study of the national economy while macroeconomics is the study of the global economy. iii. Economists try to understand how the economic world works by testing normative statements. A) only i B) i and iii C) only ii D) only iii E) i and ii
Suppose that choice sets are convex. State assumptions about tastes that are necessary and sufficient to guarantee that the first order conditions are necessary and sufficient for identifying a true optimum.
What will be an ideal response?
What determines the ability of these factors to shift the short-run aggregate supply curve, to shift the long-run aggregate supply curve, or to shift both curves?
a. whether or not the effects cause changes in the overall price level
b. whether the effects are temporary or permanent
c. whether or not producers are fooled by the misperception effect
d. whether the effects are positive or negative
Which of the following would likely cause an increase in the supply of single-serve coffee makers?
A. a decrease in the cost of manufacturing single-serve coffee makers B. a widespread expectation that the price of single-serve coffee makers will rise in the future C. a decrease in the number of consumers demanding single-serve coffee makers D. an increase in the price of single-serve coffee makers