Assume that the quantity of CDs is measured on the horizontal axis, while the quantity of movie tickets is measured on the vertical axis. If available income decreases, then
A. the vertical intercept of the budget line decreases, while the horizontal intercept remains unchanged.
B. the horizontal intercept of the budget line decreases, while the vertical intercept remains unchanged.
C. the budget line will shift inward.
D. the budget line will shift outward.
Answer: C
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The table above shows how the number of books Katie buys each year depends on her income a. What kind of relationship exists between Katie's income and the number of books she purchases? b
Plot the relationship between Katie's income and the number of books she purchases in the above figure. Measure income along the vertical axis and the number of books along the horizontal axis. Be sure to label the axes. c. What is the slope of the relationship between $50,000 and $70,000 of income? d. What is the slope of the relationship between $90,000 and $110,000 of income? e. Comment on the similarity or dissimilarity of your answers to parts (c) and (d).
The short-run supply curve for a good is upward sloping because it is possible for producers to completely adjust the resources used in production in response to price changes
Indicate whether the statement is true or false
Which of the following would generate positive externalities?
a. flu vaccinations b. pesticides used to create greater yields per bushel c. cigarette smoking in elevators d. litter left at the beach e. an unkempt front yard
Which of the following formulas accurately reflects this graph?
a. P* ($7) + ATC ($8) ? q* (100) = $1,500
b. P* ($7) ? ATC ($8) ? q* (100) = $?100
c. P* ($8) + ATC ($7) ÷ q* (100) = $.15
d. P* ($7) ? ATC ($8) ÷ q* (100) = $?.01