Max has allocated $100 toward meats for his barbecue. His budget line and an indifference map are shown in the above figure. Which of the following bundles are in Max's opportunity set?
A) a, b, c
B) b, d, e
C) a, b, d
D) None of the above
B
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Joe, a hair dresser, offers students a discount price on haircuts. This form of pricing is an example of
A) a marginal cost pricing rule. B) an average cost pricing rule. C) price discrimination. D) perfect price discrimination.
In the classical model, even when a country runs a trade deficit, Say's law holds
a. True b. False
Disney World decides to charge local residents a lower price than other park visitors. This would fall under which field of economics?
A. Macroeconomics B. Microeconomics C. Customer service D. Public policy
In the above figure, starting at E1, if there is a supply shock that is permanent, the
A. aggregate supply would shift to SRAS1 and LRAS0 would shift to LRAS1. B. aggregate supply would shift to SRAS1 and LRAS1 would shift to LRAS0. C. aggregate supply would shift to SRAS2 and LRAS0 would shift to LRAS1. D. aggregate supply would shift to SRAS1 and then return to SRAS0.