How much is induced consumption when disposable income is $3 trillion?
A. 0
B. $1 trillion
C. $1.5 trillion
D. $2.5 trillion
C. $1.5 trillion
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Assume that a consumer purchases a combination of products Y and Z. The MUy is 50 and the Py is $25. The MUz is 20 and the Pz is $5. What should this consumer do to maximize utility?
Please provide the best answer for the statement.
Refer to the above figure. Suppose the economy is at E originally, when the dollar increases in value. Which aggregate supply curve applies if the value of real GDP increases?
A. 1 B. 2 C. 4 D. 5
The determinants of elasticity include
A. time. B. price relative to income. C. availability of substitutes. D. all of the above
Market failure occurs in natural monopolies because
A. Consumers are not willing to pay the price that the monopolist charges. B. The monopolist fails to maximize profits. C. The monopolist charges a price lower than marginal cost. D. Consumers get inaccurate information about the opportunity cost of the product.