The compensated demand curve only responds to the income effect from a price change
Indicate whether the statement is true or false
False . Income effects do not occur on a compensated demand, as income automatically adjusts to price changes such that utility remains constant.
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Assuming that the marginal utility of wealth diminishes implies that
A) you have more total utility with $100 than with $1,000. B) you have more total utility with $1,000 than with $1,001. C) an additional dollar increases your total utility more if you only have $100 than if you have $1,000. D) an additional dollar does not increase your total utility regardless of your wealth.
When you pay off a loan at a bank, the money supply becomes smaller.
Answer the following statement true (T) or false (F)
When marginal cost is rising, what must happen to average variable cost?
a. It must be falling. b. It must be rising. c. It could be rising or falling. d. It must be constant.
Total surplus is the sum of producer’s surplus and consumer’s surplus.
Answer the following statement true (T) or false (F)