When the price of peaches went up, people bought fewer peaches and more strawberries. This is an indication that tastes have changed as a result of the price increase.
Answer the following statement true (T) or false (F)
False
Rationale: This is an indication the optimal quantity demanded has changed as a result of the increase in price --- and the optimal quantity demanded results from tastes confronting economic circumstances. The change in the price of peaches is a change in circumstances --- which in turn affects demand, not a change in tastes.
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A) short run because there are no variable costs. B) short run because there is a fixed cost. C) long run because there are no variable costs. D) long run because there are no fixed costs. E) short run and long run because the total cost increases as production increases.
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A) $2 B) $2.50 C) $3 D) $10