Author Question: The discussion of Figure 2.2 in the text indicates that quantity demanded for most goods tends to ... (Read 46 times)

kodithompson · **on:** Jul 1, 2018

The discussion of Figure 2.2 in the text indicates that quantity demanded for most goods tends to increase as income rises. However, the quantity of bananas demanded in the U.S. tends to decrease as income rises.

Under this condition, we expect that an increase in consumer income shifts the demand curve for bananas: A) rightward
B) no shift.
C) leftward.
D) upward.

Question 2

Refer to Figure 9.3. If the market is in equilibrium, the producer surplus earned by the seller of the 100th unit is

A) 0.50.
B) 0.75.
C) 1.50.
D) 2.00.
E) 2.75.