As a rule, the more of a commodity a consumer acquires, the smaller will be her total utility from that good

Which of the following is an example of a long-run adjustment?

A) Wal-Mart builds another Supercenter. B) A soybean farmer turns on the irrigation system after a month long dry spell. C) Your university offers Saturday morning classes next fall. D) Ford Motor Company lays off 2,000 assembly line workers.

The market for chewing gum is competitive with a current price of 50 cents per pack and a quantity of 100,000 packs per day. Which of the following events would lead to a new equilibrium price of 75 cents and a new equilibrium quantity of 125,000?

a. an increase in the price of other kinds of candy b. an increase in the price of the ingredients used to make chewing gum c. an agreement by workers in the chewing gum industry to work for lower wages d. a decrease in the number of young people in the population e. a decrease in income