Suppose that a consumer regards two types of soap as perfect substitutes for one another. The price consumption path generated by changing the price of one type of soap
A) is always upward sloping.
B) is always horizontal.
C) is always vertical.
D) corresponds with the axis for the cheaper soap.
E) corresponds with the axis for the more expensive soap.
D
You might also like to view...
Use the following table to answer this question, which provides information on the production of a product that requires one variable input.InputTotal Product00102002060030720408205090060980The marginal product of the 40th input item is
A. 100. B. 10. C. 20.5. D. 80.
In Figure 13-3, demand curve CAD represents a market in which oligopolists will match the price changes of rivals and demand curve EAB represents a market in which oligopolists will ignore the price changes of rivals. According to the kinked demand model, the relevant demand curve will be
A. demand curve CAB. B. demand curve CAD. C. demand curve EAD. D. demand curve EAB.
Suppose that if your income is $50,000, your tax is $5,000, but if your income is $100,000, your tax is $8,000. Such a tax is
A. Regressive. B. Proportional. C. Progressive. D. An excise tax.
The central goal of the General Agreement on Tariffs and Trade (GATT) was to:
A. promote free trade associations and customs unions. B. reduce trade barriers. C. promote international security. D. ensure a balance of trade between countries.