The cost of producing aspirin increases simultaneously as doctors find that one aspirin per day reduces the risk of heart attacks. The supply of aspirin ________ and the demand for aspirin ________ so that the equilibrium price of aspirin ________
A) increases; increases; rises
B) decreases; increases; rises
C) increases; decreases; might rise, fall, or stay the same
D) decreases; increases; might rise, fall, or stay the same
B
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Joe consumes pizza and movies. Pizza and movies are substitutes. According to marginal utility theory, if the price of a pizza rises then
A) the demand curve for pizza shifts leftward. B) the demand curve for pizza shifts leftward and the demand curve for movies shifts rightward. C) there is an upward movement along the demand curve for pizza. D) there is an upward movement along the demand curve for pizza and the demand curve for movies shifts rightward.
The marginal productivity principle has relevance only in a capitalist economy, and not in a socialist system
a. True b. False Indicate whether the statement is true or false