A technological improvement lowers the cost of producing corn. As a result, the price of a pound of corn ____ and the quantity of corn ____. Question 4 options:
A. falls; increases
B. falls; does not change
C. falls; decreases
D. rises; decreases
E. rises; increases
A. falls; increases
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Ceteris paribus, as the price of a good or service increases
A) people will buy more of it. B) people will buy less of it. C) people will want less of it. D) people will want more of it.
People who live in countries with ________ average incomes generally live __________ lives.
A. lower; shorter B. lower; longer C. higher; shorter D. higher; more meaningful
When the non exclusion aspect of a public good does not hold, but the nondiminishability component is present, how might the free rider problem be overcome and social efficiency achieved? Give examples from common social practice to illustrate your answer.
What will be an ideal response?
A local restaurant increases the prices on its burgers as soon as it begins a promotional campaign. Which of the following is most likely to be true?
a. The promotional campaign featured how much better their burgers are b. The promotional campaign focused on the value per dollar c. The promotional campaign made demand more elastic d. All of the above