The water-diamond paradox
A. occurs because goods essential to life such as water are cheap (and sometimes free).
B. occurs because nonessential goods such as diamonds are rare and therefore very expensive.
C. occurs because the price of a product is determined by its marginal utility, not its total utility.
D. All of the choices are correct.
D. All of the choices are correct.
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Monetarists such as Milton Friedman blame the Great Depression primarily (although not completely) on ___
a. the stock market crash. b. the Bank Holiday. c. the decline in investment spending. d. the waves of bank failures.
Which of the following represents the law of supply?
A) An increase in the price of a good causes an increase in the supply of that good. B) An increase in the price of a good causes a rightward shift of the supply curve for that good. C) An increase in the price of a good causes an increase in the quantity supplied of that good. D) all of the above