Refer to the budget line shown in the diagram above. If the consumer's money income is $20, the:
A) prices of C and D cannot be determined.
B) price of C is $2 and the price of D is $4.
C) consumer can obtain a combination of 5 units of both C and D.
D) price of C is $4 and the price of D is $2.
Ans: D) price of C is $4 and the price of D is $2.
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Low levels of sales that cause low levels of investment spending is an example of a
a. vicious circle. b. virtuous circle. c. convergence circle. d. divergence circle.
If four firms comprise the entire golf club industry, the market would be
a. competitive. b. characterized by interdependence of firms. c. a duopoly. d. a monopoly.
Suppose that when the price of broccoli is $4 per pound, buyers wish to buy 500 pounds per day and sellers wish to sell 800 pounds per day. In this case:
A. excess supply will lead the price of broccoli to fall. B. excess demand will lead the price of broccoli to fall. C. excess demand will lead the price of broccoli to rise. D. excess supply will lead the price of broccoli to rise.
Refer to the accompanying figures. If Mallory and Rick are the only two consumers in this market and the price of soda is $0.25 per can, then what will be the market demand for soda per month?
A. 130 cans B. 60 cans C. 70 cans D. 90 cans