Lizzie's budget line is shown in the figure above. The relative price of a cookie is ________ per cookie
A) 2 magazines
B) 0.5 of a magazine
C) $1
D) $2
B
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Four friends decide to have a party every Saturday. They decide to contribute to a pool of money that will be spent for the parties. The table shows the maximum amount each friend is willing to contribute for each party:
Number of parties Peter Mary Kate Jacob First party $250 $340 $120 $215 Second party $200 $270 $100 $160 Third party $135 $80 $70 $100 Fourth party $60 $100 $25 $40 If the cost of each party is $225, up to how many parties should they have to maximize total surplus? A) 1 B) 2 C) 3 D) 4
In August 1988, the Los Angeles Kings hired Wayne Gretzky for $15 million in cash. The hockey team's decision must have been based on the expectation that
a. Gretzky's opportunity cost will exceed $15 million. b. Gretzky's marginal revenue product will equal or exceed $15 million. c. the team's total revenue will equal $15 million. d. Gretzky's marginal revenue product will rise in the long run.
An open market __________ by the Fed increases the money supply; a(n) __________ in the required reserve ratio increases the money supply
A) sale; decrease B) purchase; increase C) sale; increase D) purchase; decrease
If the absolute price elasticity of demand for movie tickets is 0.80, an increase in ticket prices will
A) increase total revenue. B) decrease total revenue. C) not change the elasticity of demand. D) not change total revenue.