An expected future increase in the price of bananas may
A. make bananas an inferior good.
B. increase the demand for bananas now.
C. increase the supply of bananas now.
D. decrease the demand for bananas now.
Answer: B
You might also like to view...
Rent seeking is the act of obtaining special treatment by ________ to create ________
A) a monopoly; consumer surplus B) the government; economic profit C) consumers; a monopoly D) the government; consumer surplus E) competitive producers; a monopoly
If the price of a slice of pizza rises from $2.50 to $3, and quantity demanded falls from 10,000 slices to 7,400 slices, using the formula for arc price elasticity what is the percentage change in quantity?
A) -18.18% B) -29.89% C) -26% D) -35.14%
We define autonomous expenditure to be expenditure that:
A. is unaffected by the current level of income in the economy. B. that changes under the guidance of the government. C. depends on how much income changes in the economy. D. people make that pertains to the auto industry.
Answer the following questions true (T) or false (F)
1. The production possibilities frontier represents the technically efficient combination of two products a business can produce in the current period given its existing resources and technology. 2. The price of the product and marginal revenue are identical under conditions of perfect competition. 3. The marginal rate of product transformation represents the slope of the production possibilities frontier.