In the market for magazines, the "income effect" means that

A) magazines are usually purchased by people with higher than average incomes.
B) a decrease in the price of a substitute product like books will make magazine readers feel a little poorer than they were before.
C) an increase in the price of magazines will reduce the total purchasing power of magazine readers, making them able to afford fewer magazines.
D) an increase in the price of magazines will raise the relative price of magazines to books, causing magazine readers to read more books and fewer magazines.

C

Economics

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Bauxite is used for making aluminum. Which of the following will happen if bauxite prices fall, assuming all else equal?

A) The labor demand curve of aluminum manufacturers will shift to the right. B) The labor demand curve of aluminum manufacturers will shift to the left. C) Aluminum manufacturers will move to a higher point along their labor demand curves. D) Aluminum manufacturers will move to a lower point along their labor demand curves.

Economics

The incidence of sales tax is determined by the

A) level of government (for example, local, state, or federal) which imposes the tax. B) federal government in all cases. C) greed of the sellers. D) price elasticities of supply and demand.

Economics