Author Question: A major grocery store chain switches from bagging groceries in paper sacks to bagging them in ... (Read 163 times)

geoffrey

  • Hero Member
  • *****
  • Posts: 880
A major grocery store chain switches from bagging groceries in paper sacks to bagging them in plastic bags. As a result, the grocery chain demands more plastic bags than are available at the current market price. As a result:
 a. the market price for paper sacks is likely to increase.
 b. the market price for plastic bags is likely to increase.
 c. the quantity of paper sacks purchased by the chain is likely to increase.
  d. none of the above

Question 2

The greater the MPC:
 a. the greater the fraction of an increase in AD due to an increase in government purchases that is consumption.
  b. the smaller the fraction of an increase in AD due to an increase in government purchases that is consumption.
  c. the greater the change in government purchases required to achieve a given change in AD.
 d. none of the above



morrie123456

  • Sr. Member
  • ****
  • Posts: 314
Answer to Question 1

b

Answer to Question 2

a



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Human neurons are so small that they require a microscope in order to be seen. However, some neurons can be up to 3 feet long, such as those that extend from the spinal cord to the toes.

Did you know?

Between 1999 and 2012, American adults with high total cholesterol decreased from 18.3% to 12.9%

Did you know?

According to animal studies, the typical American diet is damaging to the liver and may result in allergies, low energy, digestive problems, and a lack of ability to detoxify harmful substances.

Did you know?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

Did you know?

Green tea is able to stop the scent of garlic or onion from causing bad breath.

For a complete list of videos, visit our video library