Sugar and honey are viewed as substitutes for each other in many cooking applications. If the price of sugar rises, we would expect the:
A. demand for honey to increase.
B. demand for honey to decrease.
C. quantity demanded of honey to decrease.
D. price of honey to decrease.
Answer: A
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In 2014, the price of peanuts was rising, which led peanut butter sellers to expect the price of peanut butter would rise in the future
Consequently, in the current market for peanut butter there was ________ which resulted in ________ in the price of peanut butter and ________ in the quantity of peanut butter. A) an increase in demand for peanut butter; an increase; an increase B) an increase in supply of peanut butter; a decrease; an increase C) a decrease in demand for peanut butter; a decrease; a decrease D) a decrease in supply of peanut butter; an increase; a decrease
A chemical factory and a fishing club share a lake. Producing chemicals creates water pollution that harms the fish. The marginal social cost, private marginal cost, and marginal benefit from producing chemicals are in the figure above
Initially the lake is owned by no one. Keeping in mind the Coase theorem, if transactions costs are low then if the chemical factory owns the lake ________ tons of chemicals will be produced and if the fishing club owns the lake, ________ tons of chemicals will be produced. A) 4; 4 B) 4; 8 C) 8; 4 D) 8; 8
At equilibrium, quantity sold equals the quantity bought. This implies that
A) to sell more, producers require more in payment than consumers are willing to pay. B) government regulation is necessary. C) to sell less would require a lower price but would yield greater profit. D) those who don't buy have been treated unfairly.
A worker received $5 for a daily wage in 1930 . What is the value of that wage today if the CPI was 17 in 1930 and is 230 today?
a. 37 cents b. $4.63 c. $67.65 d. $37.86