The price of a gallon of milk falls. Which of the following is a possible cause?
A) a decrease in the price of oatmeal, a complement to milk
B) a discovery that milk cause diabetes
C) Milk is a normal good and people's incomes rise.
D) a drought that reduces supplies of feed grains fed to cows that produce milk
B
Economics
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In the aggregate expenditures model, if an economy operates above equilibrium GDP, there will be:
a. unplanned inventory depletion. b. an increase in GDP. c. an increase in employment. d. a decrease in GDP.
Economics
The Kahneman-Tversky value function shows that a gain of $100
A. would be offset in one's mind by a loss of more than $100. B. would be offset in one's mind by a loss of less than $100. C. would be offset by a gain of $100. D. is valued less than two gains of $50.
Economics