Suppose the market for shoes consists of three consumers. The accompanying table shows the quantity demanded at various prices for each consumer:PricePer PairPairs Demandedby PatPairs Demandedby LeighPairs Demandedby Chris$100010$75031$50173$302105The data suggest that Leigh:
A. has a greater demand for shoes than either Pat or Chris does.
B. has a higher income than either Pat or Chris do.
C. does not experience diminishing marginal utility.
D. prefers shoes to other items that are for sale.
Answer: A
You might also like to view...
An increase in the amount of resources would shift the long-run aggregate supply curve:
A) rightward. B) leftward. C) no shift. D) none of the above.
A demand curve is a graph:
A. that visually displays the demand schedule. B. depicting various price-quantity combinations of a good for a seller. C. that shows the quantities demanded by consumers of a particular good or service at various incomes. D. that shows the quantities demanded by consumers of a particular good or service at one price.
An analysis of production possibilities curves indicates that the reason why underdeveloped nations have difficulties increasing their economic growth rates is because:
a. low population growth rates mean fewer workers to produce food and other necessities. b. their production possibilities curves shift in when resources are increased. c. their production possibilities curves are positively sloped, unlike those in more developed economies. d. they must cut back their already meager consumption levels to increase capital production. e. the opportunity cost of shifting resources from consumption goods to capital goods is relatively low.
Which of the following statements is true?
A. The four phases of the business cycle, in order, are: peak, recovery, trough, recession. B. When unemployment is rising then real GDP is rising. C. The economic problem typically associated with a recovery is rising unemployment. D. Full employment exists in an economy when the unemployment rate equals the sum of frictional, and structural unemployment rates.