Answer the following questions true (T) or false (F)
1. Assume that the total for a given consumer, the marginal utility of food is 160 and the price of food is $40. Also, assume that the marginal utility of environment quality is 500 and the price of environmental quantity of $100. This consumer should partake in more environmental quality.
2. A good is said to be both normal and a necessity if the income elasticity of demand is greater than 1.0.
3. We expect the sign of the cross-price elasticity between pancakes and maple syrup to be negative.
1. TRUE
2. FALSE
3. TRUE
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Suppose the market for Blu-rays has the demand and supply schedules shown in the table above. What is the equilibrium price and the equilibrium quantity in this market? Suppose the current price is $12.00
What is the quantity of Blu-rays sold? Explain. Is there a shortage or a surplus? How big is it? Explain.
In the above figure, the monopsony wage rate is ________ and the quantity of labor is ________
A) $7.00; 150 hours B) $8.00; 200 hours C) $6.00; 100 hours D) $8.00; 100 hours