Figure 4.3 illustrates the demand for tacos. A decrease in price of tacos would bring about a movement from
A) point a to point c. B) point c to point a. C) D2 to D0. D) D0 to D2.
A
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Suppose the equilibrium quantity of ethanol has decreased. Which of the following could have caused this change?
A) a decrease in demand B) an increase in supply C) an increase in quantity demanded D) an increase in quantity supplied
The price at which the amount consumers wish to purchase equals the amount firms wish to sell is called the
A. equilibrium price. B. optimal result. C. optimal quantity. D. equilibrium quantity.
Suppose an agent must pay the full marginal cost for an item but splits the marginal revenue with the principal. As a result,
A) joint profit is maximized. B) joint profit is not maximized. C) the agent will not enter into such a contract. D) the agent wishes to sell as many items as he can.
A firm's retaining of earnings is really equivalent to the firm
A. decreasing the net worth of households. B. decreasing its own net worth. C. borrowing money from households. D. lending money to households.