Econ Mob Lab

Suppose that I own a farm with a limited amount of space for livestock. Previously, I raised pigs on my farm, but with the change in consumer tastes shifting in favor of buffalo wings, I have decided to stop raising pigs and start raising chickens instead. What 'supply shifter' is this an example of

A change in opportunity cost

In the Cowen and Tabarrok, the British sea captains and the convicted felons was used as an example of incentives. How the incentives were changed to solve the problem of the high mortality rate on board of the ships?

Payment (to ship captions) was made dependent on the survival rate of prisoners.

What will happen with the demand curve for oranges when the price of oranges falls?

The demand curve for oranges does not shift, quantity demanded increases.

What will happen with the equilibrium price and quantity of iTunes music downloads when Demand shifts left, and the Supply shifts right?

The equilibrium price goes down and the change in equilibrium quantity is ambiguous.

What will happen with the supply curve for tax return preparation software (TRPS) when a technological advance allows the software to be produced at a lower cost?

The supply curve for TRPS shifts to the right

Lead is an important input in the production of crystal. If the price of lead decreases, then we would expect the supply of

crystal to increase.

A movement downward and to the right along a demand curve is called a

increase in quantity demanded

The rational decision maker takes an action only if the

marginal benefit is greater than the marginal cost

The phenomenon of scarcity stems from the fact that

resources are limited

The law of supply states that, other things equal, when the price of a good

rises, the quantity supplied of the good rises.

The opportunity cost of a choice is

the foregone value of the next highest valued alternative, the value of the opportunity lost.

Economics is the study of

trade-offs when making decisions

Economics is the study of how society manages its

unlimited wants and limited resources