When creating demand curves for a good where one group gets the good for free and another group must pay the market price, we must
A. add the amount that the first group wants when its free to them to the quantity demanded for the second at each price.
B. add the quantity demanded for each group at each price.
C. take an average of the quantity demanded at each price.
D. add the price paid at each quantity.
Answer: A
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Strategic dependence is found in
A) monopoly markets. B) oligopolistic markets. C) monopolistic competitive markets. D) perfect competitive markets.
When people expect their income to be lower in the future, they will be:
A. more inclined to save. B. less inclined to save. C. unaffected in their present choices. D. People only react and change their savings decisions based on recent history.
What is the percentage of income received by the upper quintiles on line K?
Which of the following best describes why indifference curves cannot cross? a. If indifference curves cross, there are situations where individuals are indifferent between bundles where one bundle contains strictly more of both goods than the other bundle. b. If indifference curves cross, individuals are not necessarily consuming along their budget line
c. If indifference curves cross, the marginal rate of substitution can be both increasing and decreasing at a specific point. d. If indifference curves cross, the goods can be both substitutes and complements.