When the price of hot dogs at the supermarket increases, the quantity demanded of hot dog buns declines. This situation describes:
a. the income elasticity of demand for hot dogs.
b. the income elasticity of demand for hot dog buns.
c. the price elasticity of supply for hot dogs.
d. the negative cross-price elasticity of demand for hot dogs and hot dog buns.
e. the positive cross-price elasticity of supply for hot dogs and hot dog buns.
QUESTION 2How does the law of demand reflect the law of diminishing marginal utility?
QUESTION 3If the supply of skilled workers is increased such that it is equal to the supply of unskilled workers, we can expect:
a. wages of skilled workers to be equal to wages of unskilled workers.
b. wages of skilled workers to be lower than wages of unskilled workers.
c. wages of skilled workers to be higher than wages of unskilled workers.
d. wages of unskilled workers to fall from its current level.
e. wages of both skilled and unskilled workers to remain unaffected.
QUESTION 4As the price of movie tickets increases, which of the following is most likely to happen?
a. The demand for DVDs will increase.
b. The quantity of books demanded will decrease.
c. The number of Broadway tickets purchased will decrease.
d. The prices of popcorn and soda will increase.
e. The number of movies being produced will decrease.
QUESTION 5What do economists mean by consumer equilibrium?
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