Which of the following is correct about a consumer's optimization problem:
A. In order for a consumer to not be optimizing at a corner solution, it is necessary for us to assume that all goods are essential.
B. In order for a consumer to not be optimizing at a corner solution, it is sufficient for us to assume that all goods are essential.
C. In order for a consumer to not be optimizing at a corner solution, it is necessary and sufficient for us to assume that all goods are essential.
D. None of the above.
Answer: B
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a. the market is efficient b. without reliable information, lemons become increasingly common c. no good cars are offered on the market d. no lemons are offered on the market e. good cars sell at more than their market value
Jane stitched a prom dress which she could have bought for $180 from a store. Which of the following will happen if she keeps the dress for herself?
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A. innovation. B. invention. C. creative destruction. D. diffusion.
Other things being equal, suppose that the demand for wheat in constant quality units increases. The increase in demand will cause
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