Pam graduates from law school and gets a position in a law firm. At the same time the price of hamburger falls while other food prices have stayed the same. She notices that she buys less hamburger than she did before.
Is she violating the law of demand? A) Yes, since she is buying less hamburger at a lower price.
B) Yes, since she is buying less hamburger in a relatively short period of time and we wouldn't expect her tastes to have changed.
C) No, since the law of demand refers to relative price changes and the price of hamburger falling is an absolute price change.
D) No, since other things are not held constant, such as her income.
Question 2
When an employee at a grocery store scans the price of your items, bags the groceries, and collects your paper, the individual has provided
A) physical capital.
B) entrepreneurship.
C) a service.
D) land.
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