A consumer's budget line shows
a. the utility that an individual would receive from consuming various combinations of two goods
b. the combinations of two goods that an individual is able to purchase, given prices and income
c. how income is influenced by prices of goods
d. how changes in income affect utility
e. the relationship between prices and income
B
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Studies on consumer behavior have found that most people value fairness enough that they will refuse to participate in transactions they consider unfair, even if they are worse off as a result
How does this affect a firm's decision to raise prices in the event of a temporary increase in demand?
If the centrally planned economy of Rowboat dismantles central controls before institutions such as property rights are in place, instability will most likely result
a. True b. False
The ________ is the rate of change of the ________.
A. rate of inflation; CPI B. current year price index; base year price index C. CPI; rate of inflation D. base year price index; current year price index
There are outputs for which ________ costs exceed ________ costs in the short run.
A) total fixed; total B) average variable; average total C) total variable; total D) average total; average variable