When the price of movie tickets increases, the sale of popcorn at movie theaters decreases. This effect is measured by ______ elasticity of demand.
a. revenue
b. unit
c. income
d. cross-price
d. cross-price
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An argument in favor of fractional-reserve banking is that
A) unregulated institutions would be riskier than regulated fractional-reserve banks. B) it increases the precision of the central bank's control over the quantity of money. C) a bank deposit is owned by the depositor, so the bank has no legal right to lend the deposit to someone else. D) it decreases the risk of a bank running out of cash.
Suppose that the price of a pizza is $10 and that the price of a blouse is $30 . At her present level of consumption, Magda's ratio of marginal utility of pizza to marginal utility of blouses is 1/2 . To maximize total utility, she should
a. buy more pizzas and fewer blouses b. buy fewer pizzas and more blouses c. continue to buy the same quantities of pizza and blouses d. spend more time consuming pizza e. spend more time buying blouses
Smoothies cost $0.20 per ounce. Suppose that after a jog you usually buy an 8 ounce fresh fruit smoothie at your neighborhood juice bar. You recently won a discount coupon in a fund-raiser, which allows you to buy smoothies for $0.15 per ounce. Now after you jog you buy the 15 ounce size of smoothie. Which of the following are consistent with this information?
a. You get more utility from the 8 ounce smoothie than from the 15 ounce smoothie. b. You experience diminishing marginal utility for each ounce of smoothie you consume. c. You have an upward-sloping demand for smoothies. d. You have an inelastic demand for smoothie.
Based on the graph showing the supply and demand for health care service, health insurance ______.
a. decreases the demand for health care
b. increases the demand for health care
c. decreases the price for health care
d. increases the efficiency of health care