The following figure shows the demand curves for baby formula. Which of the following changes is likely to happen if the price of baby formula increases?
a. a shift of the deman curve from D2 to D1
b. a movement from point b on the demand curve D1 to point c on the demand curve D2
c. a shift of the demand curve from D1 to D2
d. a movement along the demand curve D2 from point d to point c
e. a movement along the demand curve D1 from point a to point b
Ans: D. A movement along the demand curve D2 from point d to point c
Economics
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If New England had a Gini coefficient of 0.32 and the Middle Colonies had a Gini coefficient of 0.65, which of the following would be most accurate?
a. The Middle Colonies would have a higher per capita income. b. The Middle Colonies would have a lower per capita income. c. The Middle Colonies would have greater income inequality. d. The Middle Colonies' income was growing faster.
Economics
Demand-pull inflation is due to:
a. minimum wage laws. b. labor cost increases. c. excess total spending. d. tax increase.
Economics