If the price of hamburger increases, the substitution effect works to
a. decrease the quantity of hamburger supplied.
b. increase the number of hamburger buns demanded.
c. decrease the quantity of hamburger demanded.
d. increase the number of hamburger buns supplied.
C
You might also like to view...
To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
When a California farmer decides to harvest lettuce using machines instead of by migrant workers, the farmer is answering the ________ part of one of the two big economic questions
A) "how" B) "for whom" C) "scarcity" D) "what"
Suppose that the quantity of root beer demanded declines from 103,000 gallons per week to 97,000 gallons per week as a consequence of a 10 percent increase in the price of root beer. The price elasticity of demand is
A) 0.60. B) 1.40. C) 1.66. D) 6.00.
The relationship between economic inputs and outputs is
a. productivity b. capital c. production function d. factors of production e. none of the above