A decrease in the price of peanut butter will most likely cause an increase in the demand for ______.
a. orange juice
b. margarine
c. jelly
d. cheese spread
c. jelly
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Other things equal, a price floor will reduce consumer surplus, but it will increase producer surplus if the government buys up any surplus at the price floor
a. True b. False Indicate whether the statement is true or false
The view that those whose preferences represent the middle position on an issue will tend to determine the outcome of an election is called: a. rent seeking
b. the median voter model. c. the special interest effect. d. the cyclical majority problem.
Which of the following is a primary difference between price searchers and price takers?
a. Price searchers maximize profits, but price takers do not. b. Price searchers have to cut their price to sell additional output, but price takers do not. c. The market demand for goods produced by price searchers is downward sloping, while the market demand for goods produced by price takers is horizontal. d. Profit-maximizing price searchers will expand output to the quantity where marginal revenue equals marginal cost, but price takers will not.
International trade
a. raises the standard of living in all trading countries. b. lowers the standard of living in all trading countries. c. leaves the standard of living unchanged. d. raises the standard of living for importing countries and lowers it for exporting countries.