When economists speak of preferences as influencing demand, they are referring to
A) directly observable changes in prices and income.
B) an individual's attitudes toward goods and services.
C) the excess of wants over the available supplies.
D) the availability of a good to all income classes.
B
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Since the 1960s, most U.S. foreign aid has been administered through the:
a. United States Agency for International Development. b. United Nations. c. United States Treasury. d. United States Agency for Foreign Intervention.
Suppose you are deciding whether or not to increase production. You are making a loss with many competitors. If you produce one more unit, your increase in cost will be $10, your average variable costs will increase to $9.50, and your average fixed costs will decrease. Finally, the price you are able to charge will be $9.75. You should
A. increase production by exactly 1 unit. B. increase production by at least 1 unit. C. leave production unchanged because profit is maximized where you are. D. shut down.