Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. An increase in the price of a soda results in a movement to a point such as
A) none of the points illustrated.
B) b.
C) c.
D) d.
D
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What is the marginal rate of substitution and how does it relate to an indifference curve?
What will be an ideal response?
Refer to Figure 6-10. A unit-elastic supply curve is shown in
A) Panel A. B) Panel B. C) Panel C. D) Panel D.
Suppose that everyone who has looked for a job for more than six months gave up in despair and stopped looking. What would happen to the unemployment rate? a. It would increase
b. It would fall. c. It would change, but the effect cannot be predicted. d. It would not change.
Suppose that the price of macaroni rises. Quantity supplied will ________ and producer surplus will ________.
A. increase; increase B. increase; decrease C. decrease; increase D. decrease; decrease