Look at the following equations and then answer the question below.
Week 1:
MU1/$1 > MU2/$1
9 utils/$1 > 1 utils/$1
Week 2:
MU1/$1 > MU2/$1
6 utils/$1 > 2 utils/$1
If consumer equilibrium is reached in week 3, what is the most likely value of MU1 in week 3?
a. 1 util
b. 2 utils
c. 3 utils
d. 6 utils
c. 3 utils
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Answer the following statement true (T) or false (F)
In the late 1800s, Bernard made buggy whips. Their quality was such that people came from hundreds of miles to buy the whips. As mechanized transportation developed, horse-drawn buggies largely disappeared and so did the demand for Bernard's whips. Would Bernard have been better off if these new modes of transportation had never been invented?
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A) 1931; early 1970s B) 1961; early 1970s C) 1981; early 1990s D) 1991; early 2000s E) 1921; early 1980s
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