The theory of consumer demand
a. can be used to explain how an individual allocates time between two competing uses
b. is valid only for choices among various physical goods
c. is valid only for goods and services purchased for cash
d. is valid only if consumers are perfectly rational
e. can explain the demand for normal goods, but not the demand for inferior goods
A
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When the interest rate increases, people will adjust their precautionary demand for money
A) downward or upward depending upon the actual supply of money. B) upward. C) not at all. D) downward.
In the above figure, if the natural monopoly is not regulated it will produce
A) 12 million units at a price of $18 per unit. B) 8 million units at a price of $12 per unit. C) 8 million units at a price of $21 per unit. D) 8 million units at a price of $24 per unit.
The United States gained significant strength globally in manufacturing production during the Civil War (1861–1865)
Indicate whether the statement is true or false
If the income elasticity of demand for a service is 0.6, then a 5 percent increase in income will generate a __________ in quantity demanded
a. 3 percent decrease b. 3 percent increase c. 8.33 percent decrease d. 8.33 percent increase e. 0.12 percent decrease