ID: B The table given below represents the supply schedoles of the oly DVDs Tabl
ID: 1151758 • Letter: I
Question
ID: B The table given below represents the supply schedoles of the oly DVDs Table 3.2 abedales of the only three DVD producers in the market for Supply 1 60 50 40 30 20 Supply 2 30 25 20 Supply 3 12 Price per DVD (s) 25. According to Table 3.2, if the supply schedules 1, 2, and 3 are tn the Supply I sc three different time periods, what could explain the change trum schedule? a. A decrease in the price of DVDs b, A decrease in the cost of DVD players 1, 2, and 3 are the market supply schedules for DVDs in A change in consumer preferences A change in the average income of consumers An increase in the cost of producing DVDs d. e. 26. According to the law of diminishing utility, a. the same tax rate should be applied to every dollar b. the rich people should have a lower tax rate the rich people should have a higher tax rate the total burden on the society from a tax will be less if proportional taxation is used the poorer people should have a lower tax rate taxation is used e. 27. The income and substitution effects of a price change occur because: a. consumer incomes are not constant b. consumer substitution rates are not constant c income and substitution effects never occur simultaneously d. of diminishing marginal utility and the equimarginal principle. e. of increasing marginal utility and the equimarginal principle. a. under use a larger plant size than is indicated by short-run efficiency concerns b. under use a smaller plant than is indicated by short-run efficiency concerns C. overuse a larger plant size than is indicated by short-run d. overus e. produce at the minimum short-run and long-run average costs 28. When a firm is experiencing economies of scale, it will: efficiency concerns. e a smaller plant size than is indicated by short-run efficiency concerns. holds 29. Refer to Table 6.2. The law of diminishing marginal utility holds a. for any number of avocados b. up to five avocados c. only for one or two avocados d. only after five avocados are consumed e. for the first three avocadosExplanation / Answer
25ans) option e
increase in cost of producing DVDS made the consumers to change there mind set to the supply2
26ANS) option d
the total burden on the society from a tax will be less if propotional tax is used
27ans) option c
28ans) option d
29ans) table missing