Table 14.3In Table 14.3, Market 3 would be in equilibrium if buyers believed lemons account for:
A. 45% of the market.
B. 50% of the market.
C. 55% of the market.
D. 60% of the market.
Answer: B
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Jason buys only music downloads and food with his weekly income. In response to a decrease in the price of downloads, he buys more downloads and less food. As a result, we would expect: a. the marginal utility of downloads to increase and the marginal utility of food to decrease. b. the marginal utility of both downloads and food to remain unchanged
c. the marginal utility of downloads to decrease and the marginal utility of food to increase. d. the marginal utility of food to become negative.
Which of the following equations is accurate?
a. money interest rate = real interest rate - inflationary premium b. real interest rate = money interest rate + inflationary premium c. real interest rate = money interest rate - inflationary premium d. real interest rate = money interest rate