Someone who is risk-preferring has
A) diminishing marginal utility of wealth.
B) constant marginal utility of wealth.
C) increasing marginal utility of wealth.
D) less marginal utility of wealth than someone who is risk-preferring.
C
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A surplus tends to put ________ pressure on the price of the product, which ________ the quantity demanded
A) upward; increases B) upward; decreases C) downward; increases D) downward; decreases
Lizzie's budget line is shown in the figure above. If the price of a magazine rises, Lizzie's real income in terms of magazines books ________ and her real income in terms of cookies ________
A) increases; does not change B) decreases; does not change C) decreases; increases D) increases; decreases
The price elasticity of demand for Rosie's Roses fresh flowers the week of Valentine's Day is 1.40 and is 2.25 other days of the year. If Rosie's Roses faces a constant marginal cost of $2 per rose, what is the profit-maximizing peak-load price to charge the week of Valentine's Day?
A) $7.00 B) $9.50 C) $3.60 D) $5.60
In a bilateral monopoly with one buyer and one seller, the monopoly power of the seller and the monopsony power of the buyer tend to:
A) reinforce one another. B) counter-act one another. C) favor the buyer. D) favor the seller.