A television station reports that the price of coffee has increased but the quantity traded in the market has decreased. This situation would be caused by a(n):

Suppose Paul's utility depends on the amount of time spent playing on the Internet (x) and the amount of time playing video games (y), and his utility function is

U(x,y) = 3x0.2 y0.8 He has 15 hours of free time to spend on these two activities each week, and his goal is to maximize his utility. a. Set up the Lagrangian for this constrained maximization problem. b. What are the necessary conditions for the optimum from the Lagrangian? c. What is the optimal amount of time spent surfing the Internet and playing video games each week?

Wages for high-skilled labor have risen more than wages for low-skilled labor even though more people are highly skilled college graduates than ever before. Which of the following explains this?

a. The demand for high-skilled labor has risen alongside the number of college graduates. b. The demand for low-skilled labor has risen while the demand for high-skilled labor remains the same. c. The value of both high-skilled labor and low-skilled labor has risen, but demand for both remains the same. d. The value of low-skilled labor has risen alongside the number of high school graduates.