Principles of Economics (Second Edition)
2nd Edition
ISBN: 9780393614077
Author: coppock, Lee; Mateer, Dirk
Publisher: W. W. Norton & Company
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Question
Chapter 16A, Problem 3QFR
To determine
To explain:
The difference between an economic good and an economic bad.
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Chapter 16A Solutions
Principles of Economics (Second Edition)
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Similar questions
- Explain why individuals make choices that are directly on the budget constraint, rather than inside the budget constraint or outside it.arrow_forwardwhat is the normal and an inferior good?arrow_forwardImagine that a hypothetical economy produces three items food, clothes and Aluminum and a typical consumer buys food and clothing only. The table below shows the hypothetical results.arrow_forward
- Define veblen goods and give some example.arrow_forwardAccording to the principle of , consumers determine what is produced in the economy through their purchasing decisions.arrow_forwardSuppose you won $15 on a lotto ticket at the local 7-Eleven and decided to spend all the winnings on candy bars and bags of peanuts. The price of candy bars is $.75 and the price of peanuts is $1.50.a. Construct a table showing the alternative combinations of the two products that are available.b. Plot the data in your table as a budget line in a graph. What is the slope of the budget line? What is the opportunity cost of one more candy bar? Of one more bag of peanuts?Do these opportunity costs rise, fall, or remain constant as each additional unit of the product is purchased?c. How, in general, would you decide which of the available combinations of candy bars and bags of peanuts to buy?d. Suppose that you had won $30 on your ticket, not $15. Show the $30 budget line in your diagram. Why would this budget line be preferable to the old one?arrow_forward
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