A decrease in demand for a normal good could be caused by a(n)
a. increase in price
b. decrease in price
c. decrease in consumer incomes
d. increase in consumer incomes
e. increase in production costs
C
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If a rent ceiling is below the equilibrium rent, some allocation scheme must be used. The allocation methods include all of the following EXCEPT
A) charging the equilibrium rent. B) refusing to rent to individuals on the basis of sex, race, or some other attribute. C) requiring a payment, such as key money, in addition to the rent. D) the creation of a black market. E) increased search activity.
Maxine's Cookie Shop sells chocolate chip cookies in a perfectly competitive market for $2 per dozen. Maxine currently produces 200 dozen cookies per day and average total cost at this level of production is $1.75
What level of profit is this firm earning? Explain.
A horizontal demand curve indicates:
A. a perfectly inelastic demand. B. quantity demanded will drop to zero if the price increases by any amount. C. price elasticity is 1. D. price is not important in this market.
Which of the following would be included in the consumption component of total expenditure in the United States?
a. A citizen buying a new apartment in Colorado b. A citizen paying rent for an apartment in New York c. NASA buying a new satellite launch vehicle from another country d. The U.S. government selling submarines to another country