Suppose Lisa spends all of her money on books and coffee. When the price of coffee decreases, the
A) substitution effect on coffee is positive, and the income effect on coffee is positive.
B) substitution effect on coffee is ambiguous, and the income effect on coffee is ambiguous.
C) substitution effect on coffee is positive, and the income effect on coffee is ambiguous.
D) substitution effect on coffee is ambiguous, and the income effect on coffee is positive.
C
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Since crowd funding sites do not themselves invest in business start ups that raise funds on their sites, they don't reduce:
A) the principal-agent problem B) information costs C) transaction costs D) asymmetric information
A horizontal line has an infinite slope
a. True b. False Indicate whether the statement is true or false
New classical economists believe that:
a. market failure on a large scale is possible. b. disequilibrium in commodity markets demand government intervention. c. people are completely aware and informed about everything that is happening. d. wages are fixed in the short run. e. people purposefully substitute non-labor activities for work during recession.
A union can influence the demand for labor by:
a. effective advertising that convinces customers to buy the "union label." b. requiring union fees. c. All of the answers are correct. d. raising union fees.