Refer to the above table. If the price of Good A is $1, the price of Good B is $2, and the consumer has $13, the rational consumer will purchase
A. 1 units of Good A and 1 units of Good B.
B. 6 units of Good A and 0 units of Good B.
C. 3 units of Good A and 4 units of Good B.
D. 5 units of Good A and 4 units of Good B.
Answer: D
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If a firm hires a worker by paying him a wage lower than his value of marginal product, ________
A) firing the worker will increase the firm's profits B) the firm is making an optimum decision C) the firm should hire more workers to increase profits D) profits of the firm are minimized
Explain why an employer in a perfectly competitive market will hire more workers when the marginal revenue product is greater than the wage
What will be an ideal response?
Moneys primary role in the economy comes from the benefits of lowering transactions costs and allowing specialization. This function of money is called
A) store of value. B) medium of exchange. C) standard of deferred payment. D) unit of account.
If the quantity supplied stays the same no matter what the price is, then supply is
A. perfectly inelastic. B. unit elastic. C. perfectly elastic. D. undefined.