13. If milk is a normal good, then a decrease in consumers' income will definitely causeA a decrease in the demand for milk.B an increase in the demand for milk.C an increase in the supply of milk.D a decrease in the supply of milk.E an increase in the demand and supply of milk.14. Zero economic profit earned by firms in a perfectly competitive market indicates thatA firms will exit in the long run.B total revenue covers all variable costs of production exactly.C MR < AR.D P= ATC.E zero nomal profit.15. In the market for cream, which of the following events would increase demand, ceteris paribus?A Increased health fears regarding the consumption of too much fat (cream contains fat)B A fall in the income of consumersC An increase in the price of scones, a complementD A drop in the price of yoghurt, a substitute

Demand: It refers to the goods and services which have been demanded by the consumers in an economy…

13. If milk is a normal good, then a decrease in consumers' income will definitely cause A a decrease in the demand for milk. B an increase in the demand for milk. C an increase in the supply of milk. D a decrease in the supply of milk. E an increase in the demand and supply of milk.

13. If milk is a normal good, then a decrease in consumers' income will definitely cause A a decrease in the demand for milk. B an increase in the demand for milk. C an increase in the supply of milk. D a decrease in the supply of milk. E an increase in the demand and supply of milk.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

13. If milk is a normal good, then a decrease in consumers' income will definitely cause
A a decrease in the demand for milk.
B an increase in the demand for milk.
C an increase in the supply of milk.
D a decrease in the supply of milk.
E an increase in the demand and supply of milk.
14. Zero economic profit earned by firms in a perfectly competitive market indicates that
A firms will exit in the long run.
B total revenue covers all variable costs of production exactly.
C MR < AR.
D P= ATC.
E zero nomal profit.
15. In the market for cream, which of the following events would increase demand, ceteris paribus?
A Increased health fears regarding the consumption of too much fat (cream contains fat)
B A fall in the income of consumers
C An increase in the price of scones, a complement
D A drop in the price of yoghurt, a substitute

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