John is trying to decide how to divide his time between his job as a stocker in the local grocery store, which pays $7 per hour for as many hours as he chooses to work, and cleaning windows for the businesses downtown. He makes $2 for every window he cleans. John is indifferent between the two tasks, and the number of windows he can clean depends on how many hours he spends cleaning in a day, as shown in the accompanying table.Time cleaning windows (hours/day)Total number of windows cleaned0017211314416517 What is the lowest price per window that would induce John to spend at least one hour per day cleaning windows?

Some environmental groups are on record suggesting that the price of gasoline should be much higher than it was in the early 1990s. Why might they say this?

A) They own stock in oil companies. B) They anticipate that the longer the price is high, the more elastic the response by consumers will be. C) They anticipate that the longer the price is high, the less elastic the response by consumers will be. D) They anticipate that higher prices will reduce the price elasticity of supply of oil.

What would happen to aggregate demand if the federal government increased military purchases and state and local governments increased their road building budgets at the same time? a. AD would increase

b. AD would increase, because only federal government purchases affect AD. c. AD would increase only if the change in federal purchases were smaller than the change in state and local purchases. d. AD would decrease only if the change in federal purchases was smaller than the change in state and local purchases.