Suppose Fiona's base consumption equals $1,000 per month when her income is zero. Fiona earns $5,000 per month, and her marginal propensity to consume is 0.8 . If her monthly income increases by $1,500, her total consumption will be _____

A worker supplies labor to the market if the

A) wage is less than the reservation wage. B) wage is greater than the reservation wage. C) minimum wage is less than the reservation wage. D) demand for labor exceeds the supply of labor.

Refer to Figure 7-5. If consumers paid the full price of medical services, the equilibrium quantity would be

A) 400. B) 800. C) 1,200. D) > 1,200.