The inputs used to produce cupcakes (e.g., flour, sugar, butter, and labor) are also used to produce cookies, cakes, muffins, pies and many other goods. This suggests that:
A. the elasticity of supply of cupcakes is relatively high.
B. the elasticity of supply of cupcakes is relatively low.
C. the supply curve for cupcakes is downward sloping.
D. cupcakes are a normal good.
Answer: A
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Lizzie's preferences are shown in the figure above. Which of the following combinations of goods does Lizzie prefer the most?
A) 6 comic books and 20 cookies B) 8 comic books and 8 cookies C) 12 comic books and 10 cookies D) 4 comic books and 12 cookies
Refer to the graph shown.
The fourth quintile (a quintile is a fifth) of the families earn:
A. 28 percent of the income. B. 52 percent of the income. C. 24 percent of the income. D. 20 percent of the income.
The domestic demand and supply for sugar are Qd = 60,000 ? 400P and QSD = 20,000 + 500P. The foreign supply is QSF = 20,000 + 100P. What is the domestic quantity supplied at the domestic market price?
A. 10,000 B. 52,000 C. 22,000 D. 30,000
Economic theory implies that a mature industry without any significant technological change will tend to have firms with similar architectural structures, similar reward structures, and similar performance systems. Would the power of the marketplace be important in this case?
What will be an ideal response?