Which of these events could permanently shift a individual's demand curve for umbrellas to the right?
a) He buys a car so her no longer needs to walk to and wait at a bus stop every morning to get to work
b) He moves from a desert community to a rainy city by the ocean
c) The price of umbrellas decreases significantly as inexpensive umbrellas are imported from China
d) Weather forecasters predict that a major hurricane will hit his city in the following week
Ans: b) He moves from a desert community to a rainy city by the ocean
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If the market price is at equilibrium, the deadweight loss is maximized
Indicate whether the statement is true or false
Alfred derives utility from consuming iced tea and lemonade. For the bundle he currently consumes, the marginal utility he receives from iced tea is 16 utils, and the marginal utility he receives from lemonade is 8 utils
Instead of consuming this bundle, Alfred should: A) buy more iced tea and less lemonade. B) buy more lemonade and less iced tea. C) buy more iced tea and lemonade. D) buy less iced tea and lemonade. E) none of the above is necessarily correct.