Prices of microbrewery beer (assume that this is a normal good) have risen steadily in recent years. Over this same period, prices for fermenting vats used in beer making have also risen and consumer incomes have fallen
Which of the following best explains the rising prices of microbrewery beer?
A) The supply curve for microbrewery beer has shifted to the left while the demand curve for microbrewery beer has shifted to the right.
B) The supply curve for microbrewery beer has shifted to the left more than the demand curve has shifted to the left.
C) The demand curve for microbrewery beer has shifted to the left more than the supply curve has shifted to the left.
D) The demand curve and the supply curve for microbrewery beer have both shifted to the right.
B
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Economists who contend that oligopolists have a strong incentive to engage in R&D say that:
A. the undistributed profits of oligopolists give them a source of readily available, relatively low-cost funds for financing R&D. B. entry barriers enable oligopolists to sustain the profit it gains from innovation. C. the large size of oligopolists' R&D departments allows them to use very specialized, expensive R&D equipment and employ teams of specialized researchers. D. all of these are true.
There are two alternative plans to evacuate a village of 900 people in the path of a deadly hurricane. According to the experiment by Amos Tversky and Danial Kahenman, which program will the majority of participants choose?
If Program A is adopted, there is a 33 percent chance of evacuating all 900 people and a 66 percent possibility of evacuating no one on time. If Program B is adopted, 300 people will be evacuated. a. Program A, because it sounds like it has a greater chance of success. b. Program B, because it sounds less risky. c. Either program, because they have equal predicted outcomes d. Neither program, because neither solves the problem