Which of the following is the best example of the substitution effect?
a. Joe buys fewer apples and more oranges as the result of an increase in the price of apples.
b. Joe buys more apples when his income increases.
c. Joe buys an apple slicer when the price of apples decreases.
d. Joe buys less sugar as the result of an increase in price of apples.
a
Economics
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Which of the following describes a characteristic of a perfectly competitive market?
A) Equilibrium is achieved when demand for the product sold in the market equals the supply. B) There are many buyers and sellers. C) There are many sellers but few buyers. D) There are many buyers but few sellers.
Economics
Refer to Figure 7-5. With insurance and a third-party payer system, the equilibrium quantity of medical services is
A) 400. B) 800. C) 1,200. D) > 1,200.
Economics