Holding everything else constant, an increase in the price of MP3 players will result in
A) a decrease in the demand for MP3 players.
B) a decrease in the quantity of MP3 players supplied.
C) an increase in the supply of MP3 players.
D) a decrease in the quantity of MP3 players demanded.
D
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Firms can practice indirect price discrimination by
a. Offering volume discounts b. Using two-part pricing c. Offering a bundle containing a number of units d. All of the above
Economic theory suggests that the standard of living of American workers would rise if
a. technological change increased output per worker. b. the minimum wage were doubled. c. automation were outlawed. d. a larger proportion of the labor force was unionized.
If an increase in the interest rate raises savings, then
a. the substitution effect is greater than the income effect. b. the income effect is greater than the substitution effect. c. the income effect and the substitution effect move in the same direction. d. we are unable to determine the sizes of the income and substitution effects without more information.
Refer to the graph shown. The least-cost method of producing 1,000 units of output is shown at point:
A. A. B. B. C. C. D. D.