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30) If Ewan is consuming his utility maximizing bundle and the price of one good falls, what happens to the marginal utility per dollar spent on this good (MU/P), and what should Ewan do?

14) A decrease in the price of dashboard cameras will result in

Each of the following is an important part of personalized medicine EXCEPT:

29) Which of the following is likely to occur as the result of the law of diminishing marginal utility?

27) Suppose Pump-U-Up lowers the price of its gym membership by 10 percent and as a result, Sweat-It-Out experienced a 16 percent decline in its gym membership. What is the value of the cross-price elasticity between the two gym memberships?

13) The Internet has created a new category in the book selling market, namely, the “barely used” book. How does the availability of barely used books affect the market for new books?

21) Which of the following activities creates a negative externality?

Coal burning utilities release sulfur dioxide and nitric acid which react with water to produce acid rain. Acid rain damages trees and crops and kills fish. Because the utilities do not bear the cost of the acid rain, they overproduce the quantity of electricity. 23) S1 represents the supply curve that reflects the marginal private cost of production and S2 represents the supply curve that reflects the marginal social cost of production. One way to internalize the external cost generated by utilities is to impose a Pigovian tax on the production of electricity. What is the size of the Pigovian tax that will internalize the cost of the externality?

24) Which of the following exemplifies the tragedy of the commons?

  Price per Bushel (dollars) Quantity Demanded (bushels) Quantity Supplied (bushels) $2 40,000        0   4 34,000   4,000   6 28,000   8,000   8 24,000 16,000 10 20,000 20,000 12 18,000 28,000 14 12,000 36,000 16   6,000 40,000   The table contains information about the corn market. Answer the following questions based on this table.   37) An agricultural price floor is a price that the government guarantees farmers will receive for a particular crop. Suppose the federal government sets a price floor for corn at $12 per bushel. What is the amount of shortage or surplus in the corn market as a result of the price floor? If the government agrees to purchase any surplus output at $12, how much will it cost the government?