Which of the following would cause an increase in the supply of peanut butter?
A) a decrease in the price of grape jelly (assuming that peanut butter and grape jelly are complements)
B) an increase in the price of peanut butter
C) an increase the price of a product that producers sell instead of peanut butter
D) an increase in the number of firms that produce peanut butter
Answer: D
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The demand curve can be derived from indifference curves by varying the price of the commodity in question.
Answer the following statement true (T) or false (F)
Stores such as Costco and Sam's Club require an annual membership before you can shop there. This is a form of
A) two-part pricing. B) price gouging. C) tie-in sales. D) anti-competitive behavior.
The statement, "Violent crime has decreased in the last five years," is:
a. obviously wrong and, therefore, cannot be a positive statement. b. normative since it can be answered by simply looking at the facts. c. positive because it is testable. d. not very interesting because all normative issues are of little importance.
One prediction about monopolistic competition is that it has higher unit costs than perfect competition. But it is unreasonable to conclude that monopolistic competition is therefore bad for consumers because
A) consumers benefit from an increased variety of products. B) higher production costs means more employment. C) consumers benefit from products becoming more homogeneous. D) consumers benefit from lower prices. E) consumers benefit because of an increase in quantity available.