People use water for trivial, unimportant purposes because
A) there is little demand for water.
B) its relative price is very low.
C) they don't realize how essential water is to life.
D) they don't realize the world's supply of water is limited.
E) they underestimate the total demand for water.
B
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The law of increasing opportunity cost is based on the idea that
a. wages tend to increase with the level of employment b. interest rates tend to rise with increasing inflation c. labor costs for a typical firm are a large and growing proportion of total cost d. most resources are better suited to producing some goods than others e. the less of something we produce, the greater is the opportunity cost of producing still more
Suppose that when the price of root beer rises 1%, the quantity of hotdogs demanded falls 0.5%. This would mean that hotdogs and root beer are
A) substitutes, with a cross price elasticity of 0.5. B) complements, with a cross price elasticity of -0.5. C) substitutes, with a cross price elasticity of -2.0. D) complements, with a cross price elasticity of -2.0.