Refer to the information provided in Figure 6.10 below to answer the question(s) that follow.
Figure 6.10Refer to Figure 6.10. Kyle would increase his consumption of turkey sandwiches from 5 to 7 per week if their price fell from $8 to $6. This illustrates the idea of
A. consumer surplus.
B. cross-price elasticity of demand.
C. technical efficiency.
D. the law of diminishing marginal utility.
Answer: D
You might also like to view...
Answer the following statement(s) true (T) or false (F)
1. A Pigou tax forces car manufacturers to internalize the cost of pollution. 2. Cap and Trade is so named because the government puts a “cap” on the amount of exports that domestic firms are allowed to “trade” with foreign nations. 3. A Cap and Trade system is more prone to error than a Pigou tax. 4. Pigou taxes are unnecessary in the presence of transaction costs. 5. Pigovian analysis indicates that a subsidy should be awarded when economic activity creates social benefits.
It is possible that a multi-product monopolist will reduce the quality of a product below what its users prefer in order to make more profit
Indicate whether the statement is true or false
The most widely used approach for the analysis of oligopoly behavior is
A. game theory. B. role–playing. C. strategic engineering. D. input-output analysis.
The effect of a shift in the aggregate demand curve due to an increase in consumer confidence will be:
A. a decrease in prices only in the long run; output will remain the same. B. an increase in both prices and output in the short run. C. a decrease in both prices and output in the short run. D. an increase in output only in the long run; prices will remain the same.