Suppose a glass of orange juice has a price of $2 and a glass of soft drink has a price of $1 . If the consumer is maximizing utility,
a. juice must have higher MU than soda drink
b. the soft drink must have higher MU than juice
c. both must have equal MU
d. consumers would buy more soda drink than orange juice
e. the consumer would buy twice as much orange juice as soft drink
A
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The Elkins Act of 1903:
a. outlawed any departure from a published shipping rate. b. made the receiver of a rebate guilty of violating the law. c. probably reflected the wishes of a large majority of railroad companies. d. All of the above.
Suppose there is currently a tax of $50 per ticket on airline tickets. Buyers of airline tickets are required to pay the tax to the government. If the tax is reduced from $50 per ticket to $30 per ticket, then the
a. demand curve will shift upward by $20, and the effective price received by sellers will increase by $20. b. demand curve will shift upward by $20, and the effective price received by sellers will increase by less than $20. c. supply curve will shift downward by $20, and the price paid by buyers will decrease by $20. d. supply curve will shift downward by $20, and the price paid by buyers will decrease by less than $20.