When the price of summer tank tops falls and you buy more of it because it is relatively less expensive, this is called
a) The substitution effect
b) The income effect
c) The net effect of both the substitution effect and the income effect
d) The equilibrium choice for hours worked.
Answer: the substitution effect
Economics
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If the cost of labor increases the isocost line will
A) stay the same. B) shift outward in parallel fashion. C) rotate inward around the point where only capital is employed in production. D) shift inward in parallel fashion.
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For a monopolist, marginal revenue is always:
a. below market price. b. equal to market price. c. greater than market price. d. equal to total revenue. e. equal to total cost.
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