If a consumer buys less gasoline because gas prices increased by 100 percent, even though all other prices have also increased by 100 percent, then
A) the consumer is paying too close attention to changes in relative prices.
B) wages and prices are too flexible.
C) the consumer has been fooled by money illusion.
D) inflation is not a problem in the economy.
C
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Suppose you eat two hamburgers for lunch. The marginal benefit of the first burger is ________ of the second burger
A) larger than the marginal benefit B) not related to the marginal benefit C) smaller than the marginal benefit D) equal to the marginal cost and the marginal benefit E) equal to the marginal benefit
Compared to perfect competition, the consumer surplus in a monopoly
A) is lower because price is higher and output is lower. B) is unchanged because price and output are the same. C) is eliminated. D) is higher because price is higher and output is the same.