According to the Lucas supply function, workers who experience a positive price surprise will work more hours when
A. the income effect dominates the substitution effect.
B. there is no income effect from a positive price surprise.
C. the substitution effect dominates the income effect.
D. there is no substitution effect from a positive price surprise.
Answer: C
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One problem with the concept of utilitarianism is that
A) there is a cost to transferring income from the rich to the poor. B) there are increasing marginal costs. C) there are decreasing marginal benefits. D) markets cannot adjust to income redistribution.
Refer to above figure. What happens to the Consumer Surplus of Hungarian customers as a result of this subsidy?
What will be an ideal response?
Price of Good X(Px)Quantity of Good X(Qx)Own Price ElasticityTotal Revenue01000.000590-0.11450A80-0.258001570-0.4310502060-0.6712002550C125030B-1.5012003530-2.3310504020-4.00D4510-9.00450500-?0The demand function in the accompanying table is QXd = 100 ? 2PX. Based on this information, compute the own price elasticity of demand when PX = $25 (point C).
A. ?0.25 B. ?0.50 C. ?1 D. ?1.09
Why does competition force firms to use the least-cost, most efficient, productive techniques?
Please provide the best answer for the statement.