If, after a person buys a set of goods with his/her income and total utility is not maximized, then
a. some change in the composition of the goods bought will increase utility
b. we know that the prices were not equal
c. we know that the MU/P for all goods had to be equal
d. we know that marginal utility of the last good purchased was higher than the total utility of the set of goods bought
e. the law of diminishing marginal utility does not apply in this case
A
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
Total revenue for a seller represents the amount that:
a. sellers receive for a good or service which is computed as P ÷ Q. b. sellers receive for a good or service which is computed as P Q. c. one buyer spends on a good or service which is computed as P Q. d. one buyer spends on a good or service which is computed as P ÷ Q.
Which of the following is NOT a determinant of the demand for gasoline?
A. The price of automobiles B. The price of diesel C. The supply of gasoline D. Consumers' incomes
Economists are concerned with ______ behavior.
a. industrial b. human c. chemical d. government