Ceteris paribus, an increase in the price of a good will cause the
a. quantity demanded of the good to increase.
b. quantity supplied of the good to decrease.
c. consumer surplus derived from the good to decrease.
d. demand of the good to increase.
C
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When the production of a worker is relatively easily observable, the firm can pay a piece-rate
Indicate whether the statement is true or false
As the manager of a ski resort, you want to increase the number of lift tickets sold by 8 percent. Your staff economist has determined that the price elasticity of demand for lift tickets is 2. To increase sales by the desired amount, you should decrease the price of a lift ticket by:
A. 16 percent. B. 8 percent. C. 4 percent. D. 2 percent.
The numerical value of the MPC is typically
a. less than 1. b. equal to 1. c. greater than 1. d. unpredictable.
Choose the letter of the curve in Figure 1.2 that best represents a production possibilities curve for two goods for which there are constant opportunity costs:
A. A. B. B. C. C. D. D.