When consumers substitute a cheaper good for a more expensive one, the CPI will ________ the change in the cost of living.

When Maxwell Fruit Drinks increases the number of workers it employs from 20 to 25, its total labor costs rise from $10,000 to $15,000 a week. We know then that

a. Maxwell should never have hired the last five workers b. Maxwell should continue hiring workers c. diminishing returns have set in d. the marginal revenue product curve is decreasing e. the marginal labor cost is $1,000

"The market has failed to provide enough rental housing in New York City. This demonstrates another failure of free markets-they may lead to shortages of necessities." Explain why you agree or disagree