Tony's indifference curve for two goods (normal salt and low potassium salt) is linear, whereas Rachael's indifference curve for these same two goods is convex. We can infer that _____
a. Tony considers normal salt and low potassium salt to be perfect substitutes
b. Tony considers normal salt and low potassium salt to be perfect complements
c. Tony considers normal salt and low potassium salt to be public goods
d. Tony considers normal salt and low potassium salt to be inferior goods
a
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Suppose that you know a good is a normal good for a consumer. Which of the following can you then conclude to be true:
A. The own-price elasticity of demand is less than -1. B. The income elasticity of demand is greater than 0. C. The own-price elasticity of demand is greater than -1. D. The income elasticity of demand is less than 0. E. Both (a) and (b). F. Both (a) and (d). G. Both (b) and (c). H. None of the above.
Basis
A. will be weak (negative) if local supply today is abundant relative to the supply the market expects at maturation of the futures contract. B. will be weak if local supply today is tight relative to the supply the market expects at maturation of the futures contract. C. will be weak (negative) if current supply is tight relative to the supply the market expects at maturation of the futures contract. D. will be stronger if the local market is further distant from the delivery location stipulated in the futures contract, other things being equal, and if the local market has excess supplies.
American unemployment was lower than most European nations in the last decade because
A. the U.S. experienced a booming economy throughout the 1990s while European economies were stagnant. B. in Europe there is no longer much of a stigma attached with being unemployed. C. unemployment benefits are much more generous in Europe than in the U.S. D. All of the choices are correct.
Refer to the above table. What are total variable costs at an output of 3 units?
A. $120 B. $270 C. $150 D. $90