Assume the graph shown represents the market for pizzas sold in an hour. Which of the following could be a reason S2 to S1?
A. The price of pizza sauce has increased.
B. The price of pizza went down.
C. The price of labor for pizza shops went down.
D. People just don’t have preferences for pizza anymore.
A. The price of pizza sauce has increased.
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The price of an airline ticket from Denver to Chicago costs $450. A bus ticket costs $150. Traveling by plane takes 2 hours compared with 32 hours by bus. Other things constant, Erica would gain by choosing air travel if, and only if, she values her time at more than
A) $5 per hour. B) $300 per hour. C) $10 per hour. D) $9.38 per hour.
The general message of the full disclosure principle is that
A. the lack of evidence that something resides in a favored category will often suggest that it belongs to a less favored one. B. producers should offer lifetime warranties for low quality products. C. information is costly to fake. D. information is symmetric.
Analyzing healthcare costs in the United States is interesting because
A. other industrialized countries spend less and get better outcomes. B. the opportunity costs of healthcare appear to be too high. C. the healthcare system appears to be wasting resources. D. All of the above
With a voluntary export restraint (VER), the economic rent created by the quantitative limit on trade is collected by:
a. The government of the importing county. b. Consumers in the importing country. c. Producers in the importing country. d. Exporting firms in the exporting country.