A change in which of the following alters buying plans for cars but does NOT shift the demand curve for cars?
A) a 5 percent increase in people's income
B) a 10 percent decrease in the price of car insurance
C) a 20 percent increase in the price of a car
D) an increased preference for walking rather than driving
C
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The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. When the marginal social benefit of the last dozen doughnuts is equal to the marginal social cost
A) the efficient quantity is being produced and consumed. B) 200 dozen doughnuts are produced and consumed each day. C) an increase in production and consumption would increase efficiency. D) Both answers A and B are correct.
At prices below a consumer's willingness to pay:
A. the buyer will participate in the market because the opportunity cost is less than the benefit from consuming the good. B. the buyer will participate in the market because the opportunity cost is more than the benefit from consuming the good. C. the buyer will not participate in the market because the opportunity cost is less than the benefit from consuming the good. D. the buyer will not participate in the market because the opportunity cost is more than the benefit from consuming the good.