Which figure above shows the effect of an increase in the cost of the tomato sauce used to produce pizza?
A) Figure A
B) Figure B
C) Figure C
D) Figure D
E) Both Figure B and Figure C
C
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Currently you purchase ten frozen pizza per month. You will graduate from college in December, and you will start a new job in January. You have no plans to purchase frozen pizzas in January. For you, frozen pizzas are a(n)
a. substitute good. b. normal good. c. inferior good. d. complementary good.
If income tax rates are cut, the size of the budget deficit will necessarily increase
Indicate whether the statement is true or false
Exhibit 6-7 Marginal utility for sandwiches and sodas Quantity Sandwiches Sodas 1 10 5 2 8 4 3 6 3 4 3 1 5 ?1 0 Refer to Exhibit 6-7. If price of a sandwich is $1, the price of a soda is $1, and income is $5, Marian should buy ____ sandwiches and ____ sodas.
A. five; zero B. four; one C. three; two D. two; two
If the variable costs of a profit-maximizing pure monopolist decline, the firm should:
A. produce more output and charge a higher price. B. produce more output and charge a lower price. C. reduce both output and price. D. raise both output and price.