An unexpected rise in Retail Sales should send bond prices __________ and stock prices __________

Consider a linear, upward sloping supply curve. If the supply curve shifts upward, then:

A) the price elasticity of supply will increase. B) the price elasticity of supply will increase if the slope of the supply curve is greater than one. C) the price elasticity of supply will increase if the slope of the supply curve is greater than one and the lowest price needed to induce firms to supply anything is positive. D) the price elasticity of supply will be constant. E) none of the above

The idea that consumers continue to adjust their purchases until the marginal utility per last dollar spent on all items is equal is called the

A) law of increasing costs. B) law of diminishing marginal utility. C) rule of 72. D) consumer optimum.