The statement that ( ) is a positive statement.
A.too many people in the United States have no health care insurance
B.more students should study economics
C.the price of gasoline is too high
D.the price of sugar in the United States is higher than the price in Australia
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The price of a bag of corn chips is $3, and the price of a bottle of soda is $1. What is the relative price of a bottle of soda?
A.1/3 bag of corn chips per bottle of soda
B.3 bags of corn chips per bottle of soda
C.33¢
D.$3
If buyers of illegal goods are punished but sellers are not, then the price ( ) and the equilibrium quantity ( ).
A.rises; increases
B.falls; decreases
C.falls; increases
D.rises; decreases
In the market for oranges, the demand and supply of oranges decrease by the same amount. The equilibrium quantity will ( ) and the equilibrium price will ( ).
A.decrease; not change
B.remain the same; either rise or fall
C.decrease; fall
D.remain the same; rise
When the price of a pizza decreases from $14 to $12,
A.the income effect means that the demand for pizza will not change.
B.None of the above answers is correct.
C.the income effect points out that the total purchasing power of people who buy pizza increases.
D.the income effect means people buy less pizza.
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