When the price of a normal good falls, consumers will ______ the quantity they want, in part because they now have more money to spend on these units, which economists call ______ .
Suppose market prices for potatoes were to increase by 10%, and potato farmers wanted to know whether or not their overall total revenues would rise or fall as a consequence. The farmers could figure this out by calculating which of the following economic concepts?
Pizza and soda are often consumed together at Joe’s Diner. Suppose that the price of pizza rises from $0.75 a slice to $1.25 a slice, and consequently April sales of pizza drop from 1,050 to 950 slices. Using the midpoint method and this information, an economist could conclude the following:
Jill is willing to sell her used calculator for $20. Her friend Jack is willing to pay $90 for a used calculator. They agree and trade at a price of $50. Which of the following is correct?
Buyers in the jeans market gain ______ in consumer surplus before the imposition of the tax, and they gain ______ in consumer surplus after the imposition of the tax.
Jeans and product X (not shown) have a cross price elasticity of 3.7. After the imposition of the tax on jeans, buyers’ consumption of product X would ______ because jeans and product X are ______ .
At the arcade, Jill likes the video games, which cost $0.50 to play, and the ball toss, which costs $2 to play. She has $6 to spend at the arcade. If Jill maximizes her utility, she will
Suppose that video games still cost $0.50 and the ball toss still costs $2, but Jill now has $10.50 to spend at the arcade. If Jill chooses her optimal consumption bundle, she will purchase 9 video games and 3 games of ball toss.