Ceteris paribus, if consumer tastes change so that more people are eating broccoli, then what will happen to the market equilibrium for cabbage, a substitute good for broccoli?
a. Price will increase, and quantity will increase.
b. Price and quantity will stay the same.
c. Price will decrease, and quantity will increase.
d. Price will increase, and quantity will decrease.
e. Price will decrease, and quantity will decrease.
e
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If a monopolistically competitive firm's demand curve is shifting left, it will stop shifting when:
A. firms are positive but not large economic profit. B. the firm is earning negative economic profit. C. the firm is earning zero economic profit. D. price falls to marginal cost.
There is no free lunch means
A) each action has a cost. B) each choice involves a free item. C) each decision has elements of free goods in it. D) if you get your lunch paid for by someone else, it is free, but if you have to pay, it is not free. E) if you are invited to lunch by someone, you are not expected to pay for it.
If Japan does not have a comparative advantage in producing rice, the consequences of adopting a Japanese policy of reducing or eliminating imports of rice into their country would include:
a. Japan will be able to consume a combination of rice and other goods' consumption beyond their domestic production possibilities curve. b. the real incomes of Japanese rice producers would rise, but the real incomes of Japanese rice consumers would fall. c. the real incomes of Japanese rice consumers would rise, but the real incomes of Japanese rice producers would fall. d. the price of rice in Japan will fall.
Scarcity is a temporary state of insufficiency that ends with new innovation
Indicate whether the statement is true or false