If a consumer has a choice between only two goods and both of them are perfect complements what would the indifference curve look like and why?
What will be an ideal response?
The indifference curves would be "L-shaped". The reasoning is that one good must be accompanied by the other good in order to give the first any utility. Having more of the second good however, doesn't make the person any better off.
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Consider the same market for nonalcoholic beer as in the previous question. How many units will Boors produce in the Nash equilibrium?
a. 1,333 b. 2,333 c. 3,333 d. 4,333
An increase in the price of the good measured on the horizontal axis of a budget line diagram will
a. make the budget line flatter b. make the budget line steeper c. leave the budget line unchanged d. cause a parallel inward shift of the budget line e. cause a parallel outward shift of the budget line
Producers try to sell goods that are ______.
a. worth more to them than to the purchaser b. worth an equal amount to them as the asking price c. worth less to them than the asking price d. worth more to them than the asking price
The difference between the official and correct measures of the deficit will be greater,
A) the lower is inflation. B) the lower is the level of debt, B. C) the higher is growth of output. D) all of the above E) none of the above