If the price of prime rib falls, the income effect due to the price change will cause
A) an increase in the quantity of prime rib supplied.
B) an increase in the demand for prime rib.
C) an increase in the demand for flank steak, a substitute for prime rib.
D) an increase in the quantity of prime rib demanded.
D
Economics
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Figure 11-3
In Figure 11-3, one can tell from the graph that the monopolist will earn a positive profit only if
a.
the price exceeds $3.
b.
the price exceeds $2.
c.
output is less than 60 units.
d.
One cannot tell from the information given.
Economics
Microeconomics focuses on:
a. The individual units that make up the whole of the economy b. The workings of the whole economy or large sectors of it c. Issues such as unemployment and inflation d. Total output and the general level of prices
Economics