FIGURE 2-4Production possibilites curveFoodRefer to Figure 2-4. If the economy chooses to shift more of its resources into clothing, what will it have to give up?Select one:O a. larger and larger amounts of food per unit of added clothing as the quantity of clothing produced increasesO b. nothing, since food and clothing are NOT substitutesO c. relatively equal amounts of food per unit of added clothing as the quantity of clothing produced increasesClohing

Here, the given production possibility curve provide information about the production of food and…

Answered: IGURE 2-4 Production possibilites curve…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 17P: If a 10 decrease in the price of one product that you buy causes an 8 increase in quantity demanded...

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If a 10 decrease in the price of one product that you buy causes an 8 increase in quantity demanded of that product, will another 10 decrease in the price cause another 3 increase (no more and no less) in quantity demanded?
Suppose that coconuts and bananas are complements in consumption. Suppose further that the price of coconuts decreases while, at the same time, a fungal disease kills ten percent of the world's banana crop. Everything else held constant, the equilibrium price of bananas will equilibrium quantity of bananas transacted will and the Select one: O A. be ambiguous; be ambiguous O B. be ambiguous; increase O C. decrease; be ambiguous O D. decrease; increase O E. increase; decrease OF. decrease; decrease O G. be ambiguous; decrease O H. increase; be ambiguous increase; increase
If we observe that a consumerâ s budget constraint has shifted inward, we can assume that the consumer will buy O fewer normal goods and fewer inferior goods O more normal goods and more inferior goods O fewer normal goods and more inferior goods more normal goods and fewer inferior goods
If butter and margarine are substitutes, an increase in the price of butter causes: Select one: O a. quantity demanded of margarine to fall and the demand curve for butter to shift toward the origin O b. quantity demanded of butter remains constant, but the demand for margarine decreases O c. the demand curve for both butter and margarine shift O d. decrease in quantity demanded for butter and an outward shift of the demand curve for margarine
What offect would an increase in the cost of materials used to produce cars have on the supply of cans? O Increase O Decrease
3. The quantity of a commodity demanded by a consumer is influenced by the price of the commodity. O a. True O b. False
There is a negative relationship between the price of fuel and quantity demanded for cars, as these two goods are O a. Substitute goods O b. Normal goods Oc Complementary goods O d. Inferior goods Which of the following factors cause a contraction in quantity demanded for a commodity? O a. A rise in the price of the commodity O b. A decrease in the price of complementary goods Oc An increase in the price of its substitutes O d. An increase in the taste and preferences of the consumer for the commodity
Вooks E 20 CDs Refer to the Figure. If the price of a CD is $10, then what is the consumer's income? O $2 O $20 O $200 O S0.50 8.
If goods A and B are substitutes, an increase in the price of A will result in Select one: a. no difference in the quantity sold of either good O b. None of the answers are correct O c. increases the demand for O d. reduces the demand for B
The law of demand states that if other factorsremain constant there isSelect one:a. An exponential relationship between priceof a good and the quantity demanded.O b. A negative relationship between the priceof a good and the quantity demanded.oc. A linear relationship between price of agood and the quantity demanded.O d. A positive relationshipbetween the price ofa good and the quantity demanded.
5. In which of the following cases will the consumer redirect his consumption in favor of corn flakes, against bread: * O When MUCorn flakes = MUBread O When MU Corn flakes / P Corn flakes TU Bread /P Bread O When MU Corn flakes / P Corn flakes > MU Bread /P Bread
If two goods are substitutes, then O an increase in the price of one causes the demand for the other to fall. O there is an inverse relationship between changes in the price of one good and changes in the demand for the other. O if the price of one good falls, the demand for the other good falls also. O changes in the quantity demanded of one good will not affect the demand for the other.

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