As coffee becomes more expensive, Joe starts drinking tea instead of coffee. This is called:
A. a decrease in demand.
B. a decrease in reservation price.
C. the income effect of a price change.
D. the substitution effect of a price change.
Answer: D
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During the last decade, the price of a computer fell every year and the quantity sold increased every year. This experience suggests that the
A) "law of demand" was definitely contradicted. B) "law of supply" was definitely contradicted. C) demand curve shifted rightward. D) supply curve shifted rightward.
The above figure shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for cod, a common resource. The efficient outcome is ________
A) 0 tons per week B) 300 tons per week C) 400 tons per week D) None of the above answers is correct.
Why are climate and environmental quality considered to be public goods? What are the implications?
What will be an ideal response?
Increasing taxes likely leads to an increase in activity in the underground economy
a. True b. False