The utility-maximizing rule:
A) is inconsistent with the law of demand.
C) implies a leftward shifting demand curve.
B) implies a perfectly elastic demand curve.
D) is consistent with the law of demand.
Answer: D) is consistent with the law of demand.
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Moving along the potential GDP line, when the price level changes, the
i. real wage rate stays at the full-employment equilibrium level. ii. money wage rate changes by the same percentage. iii. money prices of non-labor resources change by the same percentage. A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
Most flat tax proposals call for exempting income to a certain minimum level
a. True b. False Indicate whether the statement is true or false
“To be sure, any theoretical model must be abstracted ‘from the richness and complexity of behavior.’ However, abstraction becomes falsification when it so simplifies human behavior as to leave it unrecognizable and unexplained.” Explain
Please provide the best answer for the statement.
Exchange rate pegs are popular with developing countries because they increase credibility
Indicate whether the statement is true or false