A decrease in the demand for soft drinks due to changes in consumer tastes, accompanied by an increase in the supply of soft drinks as a result of reductions in input prices, will result in
A) a decrease in the equilibrium quantity of soft drinks and no change in the equilibrium price.
B) a decrease in the equilibrium price of soft drinks; the equilibrium quantity may increase or decrease.
C) an increase in the equilibrium quantity of soft drinks; the equilibrium price may increase or decrease.
D) a decrease in the equilibrium price of soft drinks and no change in the equilibrium quantity.
B
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The situation described in the book as "smart for one, dumb for all" occurs when:
A. individuals make better decisions when they are alone than when they are part of a group. B. individuals act rationally, so there are no unexploited opportunities for society as a whole. C. individuals make better decisions when they are part of a group than when they are alone. D. individuals act rationally, but there are still unexploited opportunities for society as a whole.
Assume the income of consumers of good X (a normal good) increases. What occurs at the initial equilibrium price for X that signals market participants that the equilibrium price must change?
A) A surplus is created by an increase in supply. B) A surplus is created by a decrease in demand. C) A shortage is created by an increase in demand. D) A shortage is created by a decrease in supply.
All other things constant, higher implicit cost results in lower accounting profit
a. True b. False
A production possibilities frontier cannot be used to show choice
Indicate whether the statement is true or false