Fresh orange juice and frozen orange juice are substitutes in production. The price of fresh orange juice rises. As a result, the equilibrium price of frozen orange juice ________ and the equilibrium quantity ________
A) rises; increases
B) rises; decreases
C) does not change; decreases
D) falls; increases
E) falls; decreases
B
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"Marginal cost eventually increases because of the law of diminishing returns." True or false? Explain
What will be an ideal response?
Refer to the accompanying figures. If the price of soda is $1.25 per can, then the quantity of soda demanded in the market each month is: 
A. 30. B. 10. C. 0. D. 40.
According to the market clearing model a permanent increase in government purchases causes:
a. a decrease in consumption. b. an increases in real GDP. c. an increases in the real interest rate. d. all of the above.
Economists assume people behave rationally, which means that people
A) never make a mistake. B) do not intentionally make decisions that make themselves worse off. C) have the necessary information to always make correct decisions. D) always understand the consequences of their decisions.