If the amount of carbonated sodas consumed continues to decline as consumers continue to choose to buy healthier products, this will likely
A) increase the demand for premium water, because premium water and carbonated sodas are considered complements.
B) increase the demand for premium water, because premium water and carbonated sodas are considered substitutes.
C) decrease the demand for premium water, because premium water is considered an inferior good and carbonated sodas are considered normal goods.
D) decrease the demand for premium water, because premium water is considered a normal good and carbonated sodas are considered inferior goods.
Answer: B
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If one worker can pick $30 worth of grapes and two workers together can pick $50 worth of grapes, the
A. marginal revenue product of each worker is $25. B. marginal revenue product of the second worker is $20. C. marginal revenue product of the first worker is $20. D. data given does not permit the determination of the marginal revenue product of either worker.
A product's price elasticity of demand depends critically on the availability of substitutes
Indicate whether the statement is true or false
If the supply curve of the fringe in the oligopoly market is highly elastic:
a. the dominant firm will command a higher share of market output. b. the price chosen by the dominant firm will be high. c. the dominant firm's profit will be lower. d. the market price for the commodity will be low.
Minimum wages create unemployment in markets where they create a
a. shortage of labor. Unemployment of this type is called frictional. b. shortage of labor. Unemployment of this type is called structural. c. surplus of labor. Unemployment of this type is called frictional. d. surplus of labor. Unemployment of this type is called structural.