Joe the Economist tells his wife, Jane, that he wants to spend a weekend fishing with his friends. She replies, "You don't love me anymore." Just before she hits Joe with a croquet mallet, Joe explains to her that she has confused the concepts of
a. marginal utility and price
b. income and price
c. marginal utility and total utility
d. love and death
e. consumer surplus and utility
C
Economics
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Critics of price regulation suggest that some firms
A. will lack the incentive to run their business efficiently. B. will underestimate their costs and lead to bankruptcy. C. will sue the federal government for damages. D. will set their price equal to marginal cost instead of average cost.
Economics
Which of the following is true?
A. At the same price, demand is more elastic on the steeper demand curve. B. On a linear demand curve, elasticity is constant. C. On a linear demand curve, the higher the price, the less elastic is demand. D. None are true.
Economics