Ray's company just announced that everyone will be getting their pay cut by 5% in order to avoid having to close down. Ray's demand for coffee, a normal good, will likely:
A. decrease, and his demand curve will shift to the right.
B. decrease, and his demand curve will shift to the left.
C. increase, and his demand curve will shift to the right.
D. increase, and his demand curve will shift to the left.
B. decrease, and his demand curve will shift to the left.
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Refer to the scenario above. Which of the following strategy combinations denote a Nash equilibrium?
A) (Left, Left) B) (Left, Right) C) (Right, Left ) D) (Right, Right)
What can we say about the employment of resources if the economy is at a point on its production possibility frontier?
What will be an ideal response?
The concept of free trade is based on the principle that countries should specialize in the production of goods for which the
a. absolute advantage is highest b. absolute advantage is lowest c. opportunity cost is highest d. opportunity cost is lowest e. consumers have the highest demand
The percentage change in the quantity demanded in response to a percentage change in the price is known as the
A) slope of the demand curve. B) excess demand. C) price elasticity of demand. D) All of the above.