Refer to Table 10-2. Suppose Keira's income increases from $18 to $23 but prices have not changed. What is her utility maximizing bundle now?
A) 5 cups of soup and 4 sandwiches B) 5 cups of soup and 5 sandwiches
C) 6 cups of soup and 5 sandwiches D) 4 cups of soup and 5 sandwiches
D
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If the tea harvest is bad in a particular year, what will happen in the market for coffee?
a. increased price and decreased quantity b. increased price and increased quantity c. decreased price and increased quantity d. decreased price and decreased quantity e. no change in equilibrium price and quantity
Which of the following is a correct characterization of socialism?
a. Tradition answers the basic economic questions. b. Markets are used exclusively to answer the basic economic questions. c. Central planning is seldom used to answer the basic economic questions. d. Government ownership of many resources and centralized decision-making answers the basic economic questions.