A simultaneous increase in both the demand for MP3 players and the supply of MP3 players would imply that
a. both the value of MP3 players to consumers and the cost of producing MP3 players has increased.
b. both the value of MP3 players to consumers and the cost of producing MP3 players has decreased.
c. the value of MP3 players to consumers has decreased, and the cost of producing MP3 players has increased.
d. the value of MP3 players to consumers has increased, and the cost of producing MP3 players has decreased.
d
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Refer to Figure 5.3. Which of the following statements is false?
A. Points a, b and c all represent best choices for the consumer.
B. It is possible for the consumer to afford better bundles than a.
C. Point b satisfies the tangency condition.
D. It is possible for the consumer to afford better bundles than c.
Taxes
A. are mandatory payments. B. are necessary for financing government expenditures. C. do not directly relate to the benefit of government goods and services received. D. all of these answer options are correct.