« previous next »

Author Question: Suppose the price of soda is 2 each and the price of a pizza slice is 4 each. David maximizes his ... (Read 29 times)

mrsjacobs44

  • Hero Member
  • *****
  • Posts: 500
on: Jun 29, 2018
Suppose the price of soda is 2 each and the price of a pizza slice is 4 each. David maximizes his utility by buying only sodas and pizza. He buys 5 sodas and 10 slices of pizza. If the price of a soda increases to 3 each, David will
 
  A) decrease the number of sodas bought and the demand curve for sodas will shift leftward.
  B) decrease the number of sodas bought and move along the demand curve for soda.
  C) buy more pizza and move along the demand curve for pizza.
  D) buy less pizza and the demand curve for pizza will shift leftward.

Question 2

Individual economic decisions are coordinated by
 
  A) markets through adjustments in sales levels.
  B) markets through adjustments in prices.
  C) government through adjustments in sales taxes.
  D) government through adjustments in income taxes.


CAPTAINAMERICA

  • Sr. Member
  • ****
  • Posts: 325
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

Did you know?

In 1886, William Bates reported on the discovery of a substance produced by the adrenal gland that turned out to be epinephrine (adrenaline). In 1904, this drug was first artificially synthesized by Friedrich Stolz.

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

Did you know?

If all the neurons in the human body were lined up, they would stretch more than 600 miles.

David Hume (1711‑1776) was a Scottish philosopher whose skeptical examinations of religion, ... David Hume (1711‑1776) was a Scottish philosopher whose skeptical examinations of religion, ...
Do you know how many calories are in your chips-and-soda “study snack”? Do you know how many calories are in your chips-and-soda “study snack”?
The profit, p(t), made at a fair depends on the price of the ticket, t. The profit is modelled ... The profit, p(t), made at a fair depends on the price of the ticket, t. The profit is modelled ...
Consider the production function ( ) 0.5 0.5 Y = AK L . Suppose both saving rate (s) and the ... Consider the production function ( ) 0.5 0.5 Y = AK L . Suppose both saving rate (s) and the ...
Suppose that we have a sample space with five equally likely experimental outcomes: E1, E2, E3, ... Suppose that we have a sample space with five equally likely experimental outcomes: E1, E2, E3, ...
Video: Types of antimicrobial substances (interferons & complement protein)

For a complete list of videos, visit our video library