A shift of the supply curve of oil raises the price from $70 a barrel to $80 a barrel and reduces the quantity demanded from 40 million to 38 million barrels a day. You can conclude that the
A) demand for oil is elastic.
B) demand for oil is inelastic.
C) supply of oil is elastic.
D) supply of oil is inelastic.
B
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An oligopoly has ______ sellers in the market.
A. 0 B. 1 C. 3 D. many
A theory is an explanation of the causal mechanism behind observed phenomena.
Answer the following statement true (T) or false (F)
Exhibit 6-4 Total utility for multiplex tickets, video rentals, and popcorn Total Utilityfrom Multiplex Tickets Total Utilityfrom Video Rentals Total Utilityfrom Popcorn 1 movie (30 utils) 1 video (14 utils) 1 bag (8 utils) 2 movies (54 utils) 2 videos (24 utils) 2 bags (13 utils) 3 movies (72 utils) 3 videos (30 utils) 3 bags (15 utils) 4 movies (84 utils) 4 videos (32 utils) 4 bags (16 utils) In Exhibit 6-4, assume the Multiplex tickets cost $6 each, video rentals cost $2 each, and bags of popcorn cost $1 each. Suppose the consumer has $12 per week to spend on multiplex tickets, video rentals, and popcorn. In the consumer equilibrium, what is the marginal utility per dollar for each of the three goods?
A. 5 utils per dollar. B. 9 utils per dollar. C. 13 utils per dollar. D. 22 utils per dollar.
Refer to the graph shown. To maintain the price of euros at $1.00, the government must:
A. sell Q2 - Q0 euros. B. buy Q1 - Q2 euros. C. buy Q1 - Q0 euros. D. do nothing.