When Sally increases the consumption of pizza and decrease the consumption of soda, her marginal utility of
A. both pizza and soda will decrease.
B. pizza falls and the marginal utility of soda will increase.
C. both pizza and soda will increase.
D. pizza increases and the marginal utility of soda will fall.
Answer: B
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A production indifference curve shows all combinations of input quantities capable of producing a given quantity of output.
Answer the following statement true (T) or false (F)
An unexpected rise in the LEI should send bond prices __________ and stock prices __________
A) up; up B) up; down C) down; up D) down; down
Briefly explain the nature of a perfectly competitive firm. Briefly discuss the effect of new entrants into a perfectly competitive market
Suppose that a $4 per unit tax is imposed on the sellers of DVDs. The effect of the tax will be to
a. shift the supply curve up by exactly $4 and the price paid by buyers will remain unchanged.
b. shift the supply curve up by exactly $4 and the price paid by buyers will rise by less than $4.
c. shift the supply curve up by exactly $4 and the price received by sellers will rise by exactly $4.
d. shift the demand curve down by exactly $4 and the price paid by buyers will fall by exactly $4.