A critical assumption in the model of demand and supply is the independence of demand and supply curves. If the two are not independent, a shift in the supply curve can lead to a shift in the demand curve referred to as
a. supply-side economics.
b. supplier-induced demand.
c. supply shocks.
d. ceteris paribus.
e. the fallacy of supply.
B
Economics
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Burritos and margaritas are priced at $3 and $5 each, respectively. If the marginal utility of the last burrito is 15 utils, then, in consumer equilibrium, the marginal utility of the last margarita is:
a. 15 utils. b. 20 utils. c. 25 utils. d. 30 utils
Economics
Many economists think that, in the long run, the Phillips curve is
a. a horizontal line. b. a vertical line. c. the same as the short-run curve. d. a 45-degree line from the origin.
Economics