Roses are more expensive on Valentine's Day than at other times of the year, yet sales of roses are highest on that day. How does economic theory account for this?
A) An increase in demand pushes up the market clearing price of roses.
B) People buying the roses are irrational.
C) Roses are not subject to the law of demand.
D) Florists know that there are no substitutes for roses, so they take advantage of consumers on Valentine's Day.
A
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When using the terms “total utility“ or “marginal utility,” we assume
A. the consumer will exchange one commodity for another. B. the consumer will part with money for the commodity. C. the consumer has declined to purchase the commodity. D. the consumer can measure utility in exact monetary terms.
Which of the following conditions would result in the short run marginal cost curve not correctly reflecting the supply behavior of a profit-maximizing firm?
a. The firm is a price taker. b. Price exceeds average total cost. c. The elasticity of demand facing the firm is -3. d. the firm can vary several inputs in the short run.
When output rises, unemployment falls
a. True b. False Indicate whether the statement is true or false
By selecting a bundle where MRS = MRT, the consumer is saying
A) "I value my last unit of each good equally." B) "I am willing to trade one good for the other at the same rate that I am required to do so." C) "I will equate the amounts spent on all goods consumed." D) All of the above.