What does it mean if a person makes a "decision at the margin"?
A) The person compares additional benefits and additional costs when deciding what to do.
B) The person weighs the good against the bad and then decides what to do.
C) The person is more likely to say yes than to say no.
D) The person compares marginal benefits and total costs and then decides what to do.
E) The person makes a decision based on a condition.
A
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If the market price of oats is $2.5 per bushel and a farmer decides to sell at $2.8 per bushel, he is likely to sell:
a. more than 5 bushels per day. b. more than 10 bushels per day. c. less than 5 bushels per day. d. 10 bushels per day. e. nothing.
A negative income elasticity of demand coefficient indicates that:
A. The product is an inferior good B. The product follows the law of demand C. The product is a complementary good D. The product is a substitute good
How do large increases in oil prices affect the economy?
What will be an ideal response?
The last time the U.S. Post Office raised its prices for mail service critics of the rate increase argued that the Post Office's revenues would actually decline as a result of the price increase. It can be concluded that:
A) both groups believe demand is elastic, but for different reasons. B) both groups believe demand is inelastic, but for different reasons. C) the Post Office believes demand for mail service is elastic; opponents of the price increase believe demand is inelastic. D) the Post Office believes demand for mail service is inelastic; opponents of the price increase believe demand is elastic.