If consumer desire for product X increases, all of the following will occur except
What will be an ideal response?
a decrease in the quantity of resources employed in industry X.
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Which of the following does NOT describe a function of money?
A) unit of account B) barter C) medium of exchange D) store of value
The market demand for MP3 players is p = 50 - 0.5Q, and the marginal cost for Nick to obtain and sell a MP3 player is $10. If he signed a fixed-fee rental contract with the store owner and pays $400 as the rent,
A) Nick will sell 20 MP3 players. B) Nick will sell 30 MP3 players. C) Nick will sell 40 MP3 players. D) Nick will sell 50 MP3 players.
Refer to Table 10-5, which lists the values of Harry Taber's marginal utility and marginal utility per dollar for Italian submarine (sub) sandwiches and tacos. Assume that the price of a sub sandwich is $4 and the price of a taco is $2. When Harry's income is $14, he buys two Italian sub sandwiches and three tacos. The last column lists the values of the marginal utility per dollar for tacos when the price of a taco decreases to $1. Complete this statement: As a result of the change in price
A) Harry's purchasing power has increased. He will reduce his consumption of tacos so he can buy one more sub. This is an example of the substitution effect of a price change.
B) Harry's purchasing power has increased. Harry buys fewer tacos. This is an example of the substitution effect of a price change
C) Harry's purchasing power has increased. If tacos are a normal good for Harry he will buy fewer tacos. This is an example of the income effect of a price change.
D) Harry's purchasing power has increased. If tacos are a normal good for Harry he will buy more tacos. This is an example of the income effect of a price change.
In the short run where total variable cost is ________ at a(n) ________ rate, marginal cost is positive and decreasing.
A. increasing; decreasing B. decreasing; decreasing C. decreasing; increasing D. increasing; increasing