Why might a rise in the price of electric razors result in an increase in demand for nonelectric razors?
(A) Because nonelectric razors are more plentiful than electric razors.
(B) Because people might decide to shift to nonelectric razors to save money.
(C) Because electric razors are normal goods but nonelectric razors are inferior goods.
(D) Because nonelectric razors work better than electric razors.
Ans: (B) Because people might decide to shift to nonelectric razors to save money.
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The table above shows Danielle's utility from ice cream and romance novels
a) What is Danielle's marginal utility from the 4th novel? b) The price of ice cream is $5 per gallon and a novel is $10. If Danielle's budget for these two goods is $50 and she buys 2 gallons of ice cream, how many novels can she buy? If she buys 6 gallons of ice cream, what is her marginal utility per dollar spent on novels? c) Which combination of the two goods is better: 4 gallons of ice cream and 3 novels or 6 gallons of ice cream and 2 novels?
The IMF currently helps countries maintain fixed exchange rates against each other's currency
a. true b. false