If there is a surplus
A) fewer producers want to sell the product because it is too scarce.
B) consumers will drive up the price further.
C) firms will drive up the price to enhance profits.
D) the price will decline to the equilibrium level.
D
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Oscar consumes only two goods, X and Y. Assume that Oscar is not at a corner solution, but he is maximizing utility. Which of the following is NOT necessarily true?
A) MRSxy = Px/Py. B) MUx/MUy = Px/Py. C) Px/Py = money income. D) Px/Py = slope of the indifference curve at the optimal choice. E) MUx/Px = MUy/Py.
An indifference curve has a negative slope because movement along the curve requires the consumer to give up the:
a. marginal utility of one good. b. total utility of one good. c. marginal substitution value (MSV). d. marginal transitivity of one good.