Which of the following is a characteristic of consumption according to Keynes?
A) consumption depends on disposable income
B) consumption and disposable income have a direct relationship
C) when disposable income changes, consumption changes by less
D) a and c
E) a, b, and c
E
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Katie wanted to buy a new car. However, she could not decide on a model that suited her needs and was affordable at the same time
She finally decided to buy a Porsche when she learned that two of her colleagues had bought them, although its price exceeded the money she had saved for her car. Explain her behavior.
In the labor market, adjustments to changes in supply and demand
A) usually occur instantly. B) usually take time to occur. C) do not apply, since the labor market does not respond to supply and demand forces. D) do not apply, since wages in the labor market always go up.
If marginal revenue is zero then total revenue is maximized
Indicate whether the statement is true or false
Equilibrium price is
A. $5.
B. $4.
C. $3.
D. $2.