Suppose That Joan, the Only Consumer of Pork, Has a Downward-Sloping

question 181

Multiple Choice

Suppose that Joan, the only consumer of pork, has a downward-sloping demand curve for pork and faces an upward-sloping supply curve.If her demand curve shifts out because she develops a craving for pork, then at the new equilibrium (everything else equal) ,

• A)the price of pork relative to other goods will be higher than before.
• B)Joan's marginal utility from every unit of pork she eats will be higher than before.
• C)Joan's real income will be lower than before.
• D)All of the above are correct.

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Definitions:

Italy

A European country known for its rich history, culture, and contributions to art, science, fashion, and cuisine, shaped by a long Mediterranean coastline and distinguished cities.

Comparative Advantage

A concept in economics that refers to the ability of a party to produce a particular good or service at a lower opportunity cost than others.

Italy

A country located in Southern Europe, known for its rich history, cultural heritage, and significant contributions to art, cuisine, and science.

Production

The process of creating, growing, manufacturing, or improving goods and services.