The above figure gives your budget line between CDs and magazines. Which combination of CDs and magazines is not affordable?
A) combination a
B) combination b
C) combination c
D) both combinations b and d
A
You might also like to view...
Which of the following must a firm in a market economy do today to succeed?
A) efficiently organize production B) produce existing goods and services at a lower cost C) produce new or better goods or services D) Market firms today must do all of these things.
If Ap is total autonomous planned spending, c is the marginal propensity to consume, s is the marginal propensity to save, and Y is the equilibrium income level, then induced saving is
A) Ap/Y. B) Y = Ap/s. C) sY. D) cAp.
The long run is a period long enough so that one of the firm's commitments ends
a. True b. False Indicate whether the statement is true or false
To practice price discrimination a firm must:
a. face an inelastic demand curve. b. charge the same price to all its existing customers. c. have different groups of customers with different price elasticity of demand. d. sell a product which has close substitutes.