quizzes micro

Why does the demand curve slope downward? = Diminishing marginal utility , Increasing opportunity cost 

The supply curve is = the portion of the marginal cost curve above the average variable cost curve

When an increase in the demand curve happens = the intercept increases

Choose all the statements that apply If the marginal cost of production increases. = supply decreases, supply shifts to up and to the left

As the market price decreases, then = consumer surplus increases

Based on the discussion in class, if the federal government decides not to tax wages earned through tipping, then there will be = an increase in the demand for labor for tippable jobs, an increase in the supply of labor for tippable jobs

The state of Alabama has decided to increase the tax on gasoline by $0.30 per gallon. The equilibrium price of gasoline will = increase by more than $0.30 per gallon, increase by less than $0.30 per gallon

A horizontal demand curve indicates= perfectly elastic demand

You calculate the cross-price elasticity of beer and cigarettes as -1.5. If you increase the price of cigarettes by 4%, then = the quantity demanded for beer will decrease by 6%