Author Question: Marginal utility theory predicts that a rise in the price of a banana results in A) the demand ... (Read 87 times)

scienceeasy

  • Hero Member
  • *****
  • Posts: 565
Marginal utility theory predicts that a rise in the price of a banana results in
 
  A) the demand curve for bananas shifting rightward.
  B) the demand curve for bananas shifting leftward.
  C) a movement upward along the demand curve for bananas.
  D) a movement downward along the demand curve for bananas.

Question 2

The figure above represents the production possibilities frontier for a country. a) The nation is currently producing at point B and wants to move to point C.
 
  What is the opportunity cost of the move? b) The nation is currently producing at point B and wants to move to point A. What is the opportunity cost of the move?



patma1981

  • Sr. Member
  • ****
  • Posts: 292
Answer to Question 1

C

Answer to Question 2

a) By moving from point B to point C, the production of automobiles decreases by 1 million, from 3 million to 2 million. The 1 million decrease in automobiles is the opportunity cost of the movement.
b) By moving from point B to point A, the production of cameras decreases by 3 million, from 3 million to 0 million. The 3 million decrease in cameras is the opportunity cost of the movement.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

To combat osteoporosis, changes in lifestyle and diet are recommended. At-risk patients should include 1,200 to 1,500 mg of calcium daily either via dietary means or with supplements.

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?

Lower drug doses for elderly patients should be used first, with titrations of the dose as tolerated to prevent unwanted drug-related pharmacodynamic effects.

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

For a complete list of videos, visit our video library