Prices communicate information about relative availability of products. For example, a decrease in the price of corn signals to consumers and producers that:
a. consumers are buying more corn than before
b. corn is relatively more abundant than before.
c. corn is relatively less abundant than before.
d. consumers are stocking up on corn because of the predictions of a cold winter.
b
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The budget line can shift or rotate
A) only when income changes. B) only when prices change. C) when either income or prices change. D) None of the above, because changes in income and prices do not shift or rotate the budget line.
Explain how and why an all-volunteer army may actually be cheaper than an army staffed with drafted soldiers
What will be an ideal response?
A linear total cost curve which passes through the origin implies that:
a. average cost is constant and marginal cost is variable. b. average cost is variable and marginal cost is constant. c. average and marginal costs are constant and equal. d. need more information to answer question.
The table above gives the demand for a monopolist's output. What is the marginal revenue when output is increased from 2 to 3 units?
A) $18 B) $4 C) $7 D) $6