In the above figure, Reggie's budget line rotates outward from BL1 to BL2. He initially consumes at point A. If his new consumption bundle is at point B, this implies that kiwi fruit and mangoes are
A) both lower in price.
B) both inferior goods.
C) neither substitutes nor complements.
D) None of the above answers is correct.
D
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Which of the following is true for a monopoly?
A) P = MC B) P = MR C) P > MR D) P < MR
Suppose the monopolist only sold the goods separately. What prices will the monopolist charge for Good 2 to maximize revenues for good 1?
a. $4,500 b. $5,000 c. $1,500 d. $1,000
Suppose we insert $1 in the circular flow economy. If the $1 moves around in the same direction, which answer represents a possible sequence of items purchased or rented?
a. land, labor, capital, entrepreneurship b. land, services, labor, capital c. goods, labor, services, capital d. goods, labor, capital, services e. labor, capital, labor, rent
More detailed financial instruments tend to be:
A. more costly because it will cost more to create. B. less costly because they can be standardized more easily. C. more desirable than less detailed ones, no matter what the price. D. less costly because all possible contingencies are covered.