« 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 80 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?

Excessive alcohol use costs the country approximately $235 billion every year.

Did you know?

Computer programs are available that crosscheck a new drug's possible trade name with all other trade names currently available. These programs detect dangerous similarities between names and alert the manufacturer of the drug.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

The eye muscles are the most active muscles in the whole body. The external muscles that move the eyes are the strongest muscles in the human body for the job they have to do. They are 100 times more powerful than they need to be.

Alan Price - Poor People Alan Price - Poor People
You Are Mine - David Haas You Are Mine - David Haas
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, ...
Craig David, MNEK - Who You Are (Preditah Remix) That Garage Sound 129 (New UKG) Craig David, MNEK - Who You Are (Preditah Remix) That Garage Sound 129 (New UKG)
A sample of baking soda is heated and releases carbon dioxide gas into a 1000-mL A sample of baking soda is heated and releases carbon dioxide gas into a 1000-mL
Refer to Scenario 3.1. If the price of potato chips is $0.50 and the price of Cola is $4.00, ... Refer to Scenario 3.1. If the price of potato chips is $0.50 and the price of Cola is $4.00, ...
Video: Neuron Structure Animation

For a complete list of videos, visit our video library