What happens to consumer surplus in the iPod market if iPods are normal goods and buyers of iPods experience an increase in income?
a. Consumer surplus decreases.
b. Consumer surplus remains unchanged.
c. Consumer surplus increases.
d. Consumer surplus may increase, decrease, or remain unchanged.
d
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Refer to the table above. What is the market demand for wine when the price is $3?
A) 50 units B) 35 units C) 66 units D) 28 units
For a firm in a perfectly competitive market, its short-run supply curve is that portion of the MC curve above where it intersects with the average total cost curve.
Answer the following statement true (T) or false (F)
Market economies produce only a few relatively minor defects.
Answer the following statement true (T) or false (F)
The ________ combination of goods is the combination that yields the highest total utility given a consumer's income.
A. economical B. affordable C. optimal D. utility satiating