The current demand for automobiles would decrease if
a. the price of gasoline fell.
b. consumer income rose.
c. consumers suddenly believed the price of automobiles would be sharply lower in the near future.
d. consumers suddenly believed the price of automobiles would be sharply higher in the near future.
C
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Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X, ceteris paribus.Table 1.3Production Possibilities for Brushes and CombsCombinationNumber of combsOpportunity Cost(Foregone brushes)Number of brushesOpportunity Cost (Foregone combs)J4 0NAK3 10 L2 17 M1 21 N0NA23 On the basis of Table 1.3, in the production range of 1 to 2 combs the opportunity cost of producing 1 more comb in terms of brushes is
A. 4. B. 1/2. C. 1/7. D. 2/17.
The graph above represents a(n):
A. decreasing-cost industry: firms may be paying lower prices for their inputs when the industry expands. B. increasing-cost industry: firms may be paying higher prices for their inputs when the industry expands. C. constant-cost industry: prices of the inputs stay the same, and other production costs are constant as the industry expands. D. competitive, break-even industry: the long-run supply curve is upward sloping as it must be according to the law of supply.