The figure above shows
A) a positive relationship.
B) a direct relationship.
C) a negative relationship.
D) no relationship between the variables.
C
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In perfect competition, firms are price makers
a. True b. False Indicate whether the statement is true or false
Which of the following statements is not correct?
a. Patents help internalize the externalities associated with technological advances. b. Economists typically prefer regulations to corrective taxes because regulations provide more incentives for firms to seek continued reductions in pollution. c. Allowing firms to trade pollution permits will lower the total cost of reducing pollution. d. A big impediment to implementing the Coase theorem in many cases is high transactions costs.
The president of Tucker Motors says, "Lowering the price won't sell a single additional Tucker car." The president believes that the price elasticity of demand is:
A. perfectly elastic. B. perfectly inelastic. C. unitary elastic. D. elastic.
By selecting a bundle where MRS = MRT, the consumer is
A) achieving a corner solution. B) reaching the highest possible indifference curve she can afford. C) not behaving in an optimal way. D) All of the above.