How might a restaurant manager use the concept of diminishing marginal utility to increase sales to her regular dinner customers?
a. She could expand the variety of options available at each price point on the dinner menu.
b. She could increase portion size without raising the price of the dinner menu items.
c. She could offer premium versions of dinner menu items to make the regular items seem more affordable.
d. She could offer a discount on dessert only to people who order dinner.
d. She could offer a discount on dessert only to people who order dinner.
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In the United States, the temporary tax surcharge of 1968
A) actually increased consumer spending. B) decreased consumer spending by more than was originally estimated. C) had no impact on consumer spending. D) decreased consumer spending by less than was originally estimated.
If the price of the capital intensive product rises more than does the price of the land intensive product, then
A) the relative price of the capital intensive product will fall to some point between the pretrade relative prices. B) demand will shift away from the capital-intensive product, and its production will decrease. C) demand will shift away from the capital-intensive product, and its production will decrease relative to that of the land intensive product. D) the production of the capital-intensive product will decrease, but by less than production of the land-intensive product. E) the country that exports the capital-intensive good will lose its comparative advantage.