Janelle spends all of her income on songs from iTunes ($1 each) and applications ($5 each) for her iTouch. At current prices, she makes her best affordable choice and purchases 20 songs and 4 applications
Suppose, for a limited time only, applications are buy-one, get-one-free and she purchases 30 songs and 4 applications. Which of the following statements is TRUE? A) For songs, the substitution effect just equals the income effect.
B) For songs, the income effect is stronger than the income effect for applications.
C) For applications, the substitution effect is stronger than the income effect.
D) For applications, the income effect is stronger the income effect for songs.
B
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An unequal distribution of income is considered fair according to Robert Nozick if
A) marginal cost equals marginal benefit. B) the cost of administering a welfare system is minimized. C) property rights are enforced and voluntary exchange occurs. D) the economy is producing its maximum total output. E) resources are allocated using the command method.
Refer to Table 13-5. What are the firm's profit-maximizing or loss-minimizing price and quantity?
A) price = $12; quantity = 4. B) price = $10; quantity = 5. C) The firm should shut down temporarily. D) This cannot be determined from the information given.
A firm's horizontal dimension refers to
A) its size in its primary market. B) its size in all markets in which is competes. C) the level of supply chain integration the firm undertakes. D) the number of stages in the production process that are upstream from the stages the firm undertakes.
Mary and Jane are partners in a business. Their business is growing but has not yet reached the point where they can afford a new delivery truck. Jane owns an old truck that she has not been using. She decides to donate it to their business for free
A) This transaction (donation) involves no economic cost. B) This transaction involves both economic cost and accounting cost. C) This transaction involves economic cost but no accounting cost. D) This transaction involves no economic cost and no accounting cost.