The income effect explains why there is a direct relationship between the price of a product and the quantity of the product demanded
Indicate whether the statement is true or false
FALSE
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Assuming all else equal, a rise in the rate of interest:
A) results in a fall in the cost of borrowing. B) results in a fall in the amount of interest accumulated on a loan. C) results in a fall in the quantity of credit demanded. D) results in an increase in the number of potential debtors.
An example of a market where a Bertrand model would be plausible is the market for
A) oil. B) wheat. C) beer. D) sugar.
Which of the following is correct?
A) There is no firm mathematical relationship between marginal utility and total utility. B) Total utility is equal to the change in marginal utility from consuming an additional unit of a product. C) If marginal utility is diminishing and is a positive amount, total utility will increase. D) If marginal utility is diminishing, total utility must also be diminishing.
Refer to the table below. When output increases from 28 to 35 units, the marginal cost of the product is:
A. $4.44
B. $5.71
C. $6.00
D. $6.67