Beef is a normal good. You observe that both the equilibrium price and quantity of beef have fallen over time. Which of the following explanations would be most consistent with this observation?
a. Consumers have experienced an increase in income, and beef-production technology has improved.
b. The price of chicken has risen, and the price of steak sauce has fallen.
c. New medical evidence has been released that indicates a negative correlation between a person's beef consumption and life expectancy.
d. The demand curve for beef must be positively sloped.
c
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Which of the following is an example of comparative statics?
A) The estimation of the supply of a good when the wage rate of labor changes from $30 to $10 per hour B) The estimation of the ideal number of workers a firm should hire when wage rate is $20 per hour C) The estimation of the quantity demanded of a good when its price is $5 D) The estimation of the demand for a particular good when consumer income is $10
Socially inefficient outcomes are possible when
A) uninformed parties want to avoid opportunistic behavior by informed parties. B) informed parties engage in opportunistic behavior against uninformed parties. C) those in charge are risk neutral. D) workers do not own the firm.