Kristen has an income of $450 per year to spend on music CDs and movies on DVDs. The price of a CD is $15. The indifference curves in the figure above (I1, I2, and I3 ) reflect Kristen's preferences. If the price of a DVD is $22
50, then Kristen buys ________ DVDs; if the price of a DVD is $18.00, then Kristen buys ________ DVDs. A) 12; 14
B) 5; 10
C) 10; 15
D) 7.5; 12.5
C
You might also like to view...
As more of a good is consumed, marginal benefit ________ and as more of a good is produced, marginal cost ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases E) does not change; does not change
Refer to Figure 13-2. Ceteris paribus, a decrease in the labor force would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.
Explain how "learning by doing" and transportation costs each affect the long-run average cost curve
What will be an ideal response?
In the real world, we should expect the multiplier process to work itself out
A) almost instantaneously. B) within a few days. C) within about one month. D) over many months, perhaps even years.