In which of the following situations will the price of medical care decrease with an increase in its demand?
a. When the supply of medical care is the same as the demand for medical care
b. When there is an increase in productivity as a result of a technological advancement
c. When there is an increase in the price of resources used to produce medical care
d. When the supply of medical care increases more than the demand for medical care
e. When there is an increase in future profit expectations
Question 2
If the total utility for eating up to five 2.00 hamburgers is 40, 60, 70, 75, 70, respectively, which of the following is true?
a. A rational consumer would choose to eat five hamburgers at the price of 2.00
b. A rational consumer would choose to eat five hamburgers only if the price was reduced to 1.00.
c. A rational consumer would choose to eat five hamburgers only if the 5th hamburger as free.
d. A rational consumer would have to be compensated to eat the 5th hamburger.
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