In terms of utility theory, "equilibrium" in the real world means that
a. households are consuming as much of every commodity as they would like
b. households have spent their incomes in such a way that their overall satisfaction is maximized
c. households have spent their incomes in such a way that their marginal utility is maximized
d. households have spent their incomes in such a way that their marginal utility is zero for every product consumed
e. households have spent their incomes in such a way that their total utility is zero
B
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Suppose you observe that the price of movie admissions decline and that the number of people attending movies declines as well. If only the demand curve or the supply curve shifts, this suggests that
A) movies are a normal good and incomes have increased. B) high salaries for Hollywood actors have increased the cost of movie making. C) movie theaters have experienced an increase in their operating costs due to increases in the minimum wage. D) admission prices for other types of entertainment, such as live shows and sporting events, have also declined.
A decrease in the money supply in an economy results in a lower equilibrium interest rate
a. True b. False Indicate whether the statement is true or false