A consumer's demand curve for apples
a. is derived by varying the price of apples and determining the quantities of apples at which the marginal utility per dollar spent on apples equals the marginal utility per dollar spent on other goods
b. is derived by determining how many apples will be purchased at different levels of income
c. is derived by varying the prices of other goods and determining the quantities of apples at which the marginal utilities per dollar spent on all goods are equal
d. slopes downward whenever the income and substitution effects cancel out
e. will be vertical if the substitution effect outweighs the income effect
A
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During a hot summer weekend, the only supermarket near the beach decides to charge consumers $6.50 for the first 12-pack of soda pop, $5.50 for the second and third 12-packs, and $5.25 for all subsequent purchases during the same shopping trip
This would be considered A) an example of declining-block pricing. B) not very smart since consumers will buy soda pop regardless of the price. C) an example of monopoly pricing. D) an example of an inelastic demand curve.
An example of share distribution of income is how much:
A. two-parent households get relative to single-parent households. B. Black people get relative to white people. C. the top 10 percent of a population gets. D. the young get relative to the old.