While waiting in line to buy two tacos at 75 cents each, and a medium drink for 80 cents, Jordan notices that the restaurant has a value meal containing three tacos and a medium drink all for $2.50. For Jordan, the marginal cost of purchasing the third taco would be
What will be an ideal response?
20 cents.
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Economists estimated that the price elasticity of beer is -0.30 and the income elasticity of beer is 0.09. This means that
A) an increase in the price of beer will lead to an increase in revenue for beer sellers and beer is a normal good. B) a decrease in the price of beer will lead to an increase in revenue for beer sellers and beer is an inferior good. C) an increase in the price of beer will lead to a decrease in the quantity demanded of beer and beer is a luxury. D) an increase in the price of beer will increase the quantity demanded of beer and beer is a normal good.
Which of the following will raise consumer expenditures?
A) an increase in interest rates B) an increase in the price level C) a general decline in housing prices D) an increase in expected future income
Import controls that can help a government maintain a fixed exchange rate, which if left to the foreign exchange market would depreciate, are
a. lowering tariffs and increasing quotas so that more international trade occurs b. raising tariffs and decreasing quotas so that its country's demand for foreign exchange decreases c. requiring exporters to turn over their foreign exchange to the government at a fixed exchange rate d. having the IMF loan the government enough foreign exchange to get through the crisis e. causing a devaluation of the nation's currency so that exports rise and imports fall
The FDIC
A. insures most bank deposits for up to $250,000. B. eliminates the need for bank depositors to run to their bank when they hear bad news about the bank. C. has been credited with reducing the number of bank failures since 1933. D. All of these responses are correct.