What is the maximum amount of good Y that can be purchased if X and Y are the only two goods available for purchase and Px = $10, Py = $20, X = 0, and M = 400?
A. 5
B. 0
C. 20
D. 10
Answer: C
You might also like to view...
What are the factors of production and their prices?
What will be an ideal response?
Developing countries might be unable to respond smoothly to changing international price signals because of
(a) a lack of government regulation. (b) an abundance of skilled labor. (c) inelastic supply curves. (d) limited foreign exchange.
As a result of a labeling mistake at the chemical factory, a farmer accidentally sprays weedkiller rather than fertilizer on half her land. As a result, she loses half of her productive farmland. If the property of diminishing returns applies to all factors of production, she should expect to see
a. an increase in the marginal productivity of her remaining land and an increase in the marginal productivity of her labor. b. an increase in the marginal productivity of her remaining land and a decrease in the marginal productivity of her labor. c. a decrease in the marginal productivity of her remaining land and an increase in the marginal productivity of her labor. d. a decrease in the marginal productivity of her remaining land and a decrease in the marginal productivity of her labor.
Refer to the figure below:
Let demand remain constant at D; an increase in wages causes firms to be willing and able to sell 150 fewer units at each price than they were before the wage increase.
A. The new equilibrium price and quantity will be P = $6 and Q = 400. B. The new equilibrium price and quantity will be P = $8 and Q = 300. C. The new equilibrium price and quantity will be P = $6 and Q = 150. D. The new equilibrium price and quantity will be P = $7 and Q = 250.