Suppose the price of soda is $2 each and the price of a pizza slice is $4 each. Jean maximizes utility and buys only sodas and slices of pizza. If the price of a soda increases to $3 each, Jean's marginal utility per soda
A) will increase and she'll buy more soda.
B) will decrease and she'll buy fewer sodas.
C) will decrease and she'll buy more pizza.
D) Both B and C are correct.
D
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Which of the following best describes the basic characteristics of noncooperative oligopoly models?
A) Managers make decisions based on the strategy they think their rivals will pursue. B) Managers attempt to deliberately mislead their rivals regarding the strategy they will pursue. C) When making decisions, managers basically ignore the mutual interdependence that exists among rivals. D) Managers refuse to negotiate with their rivals when it comes to such decisions as what price to charge.
Cartels are likely to be better able to prevent their members from cheating on an agreement: the greater the number of members in the cartel.
a. the fewer the number of members in the cartel b. the greater the number of members in the cartel. c. the greater are the differences in production costs across member firms. d. the greater are the differences in demand projections across member firms.
Assume that for Canada the opportunity cost of producing 1 television set is 2 bushels of wheat. Assume that for the U.S. the opportunity cost of producing 1 bushel of wheat is 2 television sets. All other things being equal:
A. Canada should export televisions and import wheat. B. Canada should export wheat and import televisions. C. the United States should export wheat and import televisions. D. the United States should export televisions and import wheat.
For Keynes, the most important determinant of employment and output is/are
A. interest rates. B. aggregate supply. C. aggregate demand. D. the level of inventories.