When the price of popcorn falls, before there is any change in consumption, the
A) marginal utility of popcorn definitely increases.
B) marginal utility per dollar from popcorn definitely increases.
C) total expenditure on popcorn definitely rises.
D) entire total utility of popcorn curve definitely shifts rightward.
B
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Firms entering a perfectly competitive industry will cause the price of the product to
a. fall. b. rise. c. remain constant. d. become more responsive to consumer demand.
When there is a technological advance in the pork industry, consumer surplus in that market will
a. increase. b. decrease. c. not change, since technology affects producers and not consumers. d. not change, since consumers' willingness to pay is unaffected by the technological advance.
The price-leadership model does not assume the
A. industry is made up of one large firm and a number of smaller, competitive firms. B. dominant firm maximizes profit. C. dominant firm allows the smaller firms to sell all they want at the price the leader has set. D. demand elasticity in response to an increase in price is different from the demand elasticity in response to a price cut.
We see that the Netherlands, Belgium, and Ireland trade considerably more with the United States than with many other countries
A) This is explained by the gravity model, since these are all large countries. B) This is explained by the gravity model, since these are all small countries. C) This fails to be consistent with the gravity model, since these are small countries. D) This fails to be consistent with the gravity model, since these are large countries. E) This is explained by the gravity model, since they do not share borders.