While in college, John and Bethany each buy five packages of mac-n-cheese per week. After they graduate and have full-time jobs, John buys six packages per week, but Bethany buys only two packages per week. When looking at income elasticity of demand for mac-n-cheese, John's
a. is negative, and Bethany's is positive.
b. is positive, and Bethany's is negative.
c. is zero, and Bethany's approaches infinity.
d. approaches infinity, and Bethany's is zero.
b
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In both monopolistic competition and non-price-discriminating monopoly,
a. the marginal revenue curve lies above the average revenue curve b. the marginal revenue curve lies above the demand curve c. the marginal revenue curve lies below the demand curve d. marginal revenue is equal to average revenue e. marginal revenue is equal to price
In most societies, resources are allocated by
a. a single central planner. b. a small number of central planners. c. those firms that use resources to provide goods and services. d. the combined actions of millions of households and firms.