When incomes fail and the qualities of steak purchased change, economists make the ceteris paribus assumption because: (check all that apply)
a. the assumption is important in distinguishing between macroeconomics and microeconomics.
b. economists would otherwise be confused by the effects of changes of other variables on the quantity of steak purchased.
c. income is the most important factor that influences the quantity of steak purchased.
d. economists are able to account for all of the variables that impact the quantity of steak purchased.
e. the assumption helps isolate the effects of a change in income on the quantity of steak purchased.
b. economists would otherwise be confused by the effects of changes of other variables on the quantity of steak purchased.
e. the assumption helps isolate the effects of a change in income on the quantity of steak purchased.
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Which of the following statements is true of the demand curve and the marginal revenue curve of a monopolist?
A) Both curves have the same intercept on the price axis. B) The demand curve is downward sloping while the marginal revenue curve is upward sloping. C) The intercept of the demand curve on the price axis is higher than the intercept of the marginal revenue curve. D) The intercept of the demand curve on the price axis is lower than the intercept of the marginal revenue curve.
Railroads have received significant attention from regulators because
A. railroads enjoy significant economies of scale. B. conditions in the railroad industry are conducive to destructive competition. C. regulators would like to ensure universal service to all potential railroad customers. D. railroads are vulnerable to predatory pricing.
Suppose that milk producers expect that the price of milk is going to drop next week. This would cause
A) a decrease in the supply of milk today. B) an increase in the supply of milk today. C) an increase in the demand for milk today. D) the selling price of milk to rise today.
Holding other things constant, decreases in the price level in the US will
a. Cause the dollar to appreciate b. Cause the dollar to depreciate c. Does not affect the dollar value d. None of the above