When Pepsi becomes more expensive relative to other beverages, people will purchase less Pepsi. This observation is known as the:
a. diamond-water paradox.
b. law of diminishing marginal utility.
c. substitution effect.
d. income effect.
c
Economics
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The term "price supports" refers to a
a. shortage. b. surplus. c. price ceiling. d. price floor.
Economics
The above figure depicts the Edgeworth box for two individuals, Al and Bruce. If the endowment is at point a, and trade is possible, which of the following points are possible equilibria?
A) a and b B) a and c C) b and d D) c and d
Economics