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ECON_ 103_B_Fall_2026:Principles of Microeconomics
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How are the fundamental economic questions answered in a market economy?
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What is the difference between an "increase in demand" and an "increase in quantity demanded"?
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Figure 4-1
Figure 4-1 shows Arnold's demand curve for burritos. Refer to Figure 4-1. If the market price is $2.00, what is Arnold's consumer surplus?
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Table 4-3
Refer to Table 4-3. The table above lists the marginal cost of cowboy hats by The Waco Kid, a firm that specializes in producing western wear. If the market price of cowboy hats is $50, producer surplus is
| The Waco Kid's Cowboy Hats | Marginal Cost(dollars) |
| 1st hat | $24 |
| 2nd hat | 30 |
| 3rd hat | 38 |
| 4th hat | 46 |
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Economists assume that rational behavior is useful in explaining choices people make
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Table 2-4
Refer to Table 2-4. Assume that Michael's Cycles only produces unicycles and tricycles. A combination of 105 unicycles and 45 tricycles would appear
Production Choices for Michael's Cycles
| Choice | Quantity of Unicycles Produced | Quantity of Tricycles Produced |
| A | 150 | 0 |
| B | 135 | 15 |
| C | 105 | 30 |
| D | 60 | 45 |
| E | 0 | 60 |
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Which of the following would shift a nation's production possibilities frontier outward?
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Figure 3-1
Refer to Figure 3-1. A decrease in taste or preference would be represented by a movement from
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Adam Smith's behavioral assumption about humans was that people
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Suppose that when the price of hamburgers decreases, the Ruiz family increases their purchases of ketchup. To the Ruiz family
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