If leisure is a normal good, as the price of leisure increases, the quantity of leisure demanded ________ and the demand for leisure ________.
A. falls; increases
B. falls; is not affected
C. remains the same; decreases
D. increases; is not affected
Answer: A
You might also like to view...
The output produced by the single-price, unregulated monopoly in the above figure is
A) efficient because profit is maximized. B) inefficient because less than the efficient quantity is produced. C) efficient because marginal costs equals marginal revenue. D) inefficient because more than the efficient quantity is produced.
Many economists describe the 2007-2009 period in the United States as being a condition of a(n)
a. deflationary gap. b. recessionary gap. c. inflationary gap. d. reflationary gap.
In Figure 32.1, at the market equilibrium price-quantity combination, the total variable cost to producers is 
A. 0HGQD. B. 0HCQ*. C. 0ABQD. D. 0HEQS.
Refer to Figure 3-2. An increase in price of inputs would be represented by a movement from
A) A to B. B) B to A. C) S1 to S2. D) S2 to S1.