Author Question: Economists normally a. do not try to explain people's tastes, but they do try to explain what ... (Read 27 times)

SAVANNAHHOOPER23 · **on:** Jun 30, 2018

Economists normally
a. do not try to explain people's tastes, but they do try to explain what happens when tastes change.
b. believe that they must be able to explain people's tastes in order to explain what happens when tastes change.
c. do not believe that people's tastes determine demand, so they ignore the subject of tastes.
d. incorporate tastes into economic models only to the extent that tastes determine whether pairs of goods are substitutes or complements.

Question 2

The short-run aggregate supply curve slopes upward because:
a. firms normally can purchase some inputs at prices that are temporarily fixed in the short run.
b. firms seek maximum profits and always try to increase output in the short run.
c. firms purchase inputs that increase in price as the price level rises in the short run.
d. All of the above are correct.