1. Which of the following would cause a shift in the supply curve for soda?
a. A price increase for bottled water.
b. A decline in consumer income.
c. A celebrity endorsement of soda.
d. An increase in soda-production technology.
2. The local cable TV company is trying to convince you to replace your current “economy” bundle that features just a handful of channels with the “premium” bundle that features every available channel. To make the efficient selection, you should
a. Compare the total cost of the premium bundle to the total cost of the economy bundle.
b. Compare the additional cost of the premium bundle to the total cost of the economy bundle.
c. Compare the total benefits of the premium bundle to the total benefits of the economy bundle.
d. Compare the additional cost of the premium bundle to the additional cost of the premium bundle.