If a consumer's budget line for food (F) and shelter (S) is represented as F = 250 - 5S, we know that
A) the consumer's income is 250.
B) the price of shelter is 5.
C) the price of shelter is 5 times the price of food.
D) All of the above.
C
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Which of the following is the most important determinant of the elasticity of supply? a. The number of uses for the product
b. The number of close substitutes to the product available to consumers. c. The amount of time producers have to adjust their behavior in response to a price change. d. The percentage of their incomes consumers spend on the product.
Karlos sells his product for $40 each in a competitive price-taker market. At his present rate of output, his marginal cost is $39, average variable cost is $25, and average total cost is $45 . To improve his profit/loss situation, Karlos should
a. increase output b. reduce output but not to zero c. maintain the present rate of output d. shut down e. raise the price