According to the substitution effect along an indifference curve, when the relative price of a good falls, the consumer ________ substitutes ________ of that good for the other good
A) always; more
B) always; less
C) sometimes; more
D) sometimes; less
A
You might also like to view...
Wages are paid to ________ and interest is paid to ________
A) entrepreneurs; capital B) labor; capital C) labor; land D) entrepreneurs; land E) labor; entrepreneurs
If the physical plant for a corporation is considered to be a fixed input, then
a. it is held constant in the long run b. it can be changed in the long run c. labor must be a variable input d. technology must be changing e. the firm will lose money in the short run, except under perfect competition
The demand for cars in a certain country is given by: D = 20,000 - P, where P is the price of a car. Supply by domestic car producers is: S = 5,000 + 0.5. If this economy is open to trade, and the world price of a car is $6,000, and the government imposes a quota allowing 3,000 cars to be imported, then domestic price of the car will be ________.
A. $6,000 B. $8,000 C. $10,000 D. $5,000
Refer to Figure 26.2 for a monopolistically competitive firm. At the profit-maximizing output and price, this firm is
A. Breaking even. B. Earning an economic profit. C. Earning a monopoly profit. D. Earning an economic loss.