The increase in the demand for hybrid vehicles caused manufacturers of hybrid vehicles to increase prices by 20%. This is an example of
A. inflation.
B. deflation.
C. the operations of supply and demand.
D. a sustained inflation.
Answer: C
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Refer to the table below. If Stuffed Pies is currently producing 5 units of quality, to maximize profit, Stuffed Pies should ________ the units of quality.
Stuffed Pies is a frozen calzone manufacturer. The table above summarizes Stuffed Pies' marginal revenue and marginal cost of quality at various quality amounts.
A) decrease
B) not change
C) increase
D) decrease by 50 percent
Total utility is maximized in the consumption of two goods by equating the:
a. prices of both goods for the last dollar spent on each good. b. marginal utilities of both goods for the last dollar spent on each good. c. ratios of marginal utility to the price of both goods for the last dollar spent on each good. d. marginal utility of one good to the price of the other.
Suppose that recent studies conclude that high-fiber diets do not reduce the risk of developing colon cancer as was previously thought. The likely result will be that the:
A. demand for high-fiber foods will decrease. B. quantity demanded of high-fiber foods will fall. C. price of high-fiber foods will rise. D. supply of high-fiber foods will increase.
Assume firms break even in an industry. New firms ________ attracted to the industry and current ones ________ exiting it.
A. are not; are B. are; are C. are; are not D. are not; are not