Both Sally and Sam receive a 10% raise in a single year. Sally increases her demand for ground beef whereas Sam decreases his demand for ground beef
A) This is impossible.
B) This is only possible if Sally considers ground beef an inferior good, and Sam views it as a normal good.
C) This is only possible if Sally has lower income than Sam.
D) This is only possible if Sally considers ground beef a normal good and Sam views it as an inferior good.
D
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Explain why a firm can earn more profit by price discrimination than from setting a uniform price
What will be an ideal response?
If the discount rate is 5 percent, the present value of annual $100,000 payments in perpetuity (i.e., continued indefinitely into the future) is
a. $2,000,000 b. $1,246,296 c. $1,000,000 d. $976,463 e. infinite
Suppose Lando Calrissian owns a smuggling business whose total revenue is $30,000 per month. The accompanying table shows Lando's monthly expenses. If Lando weren't a smuggler, he would earn $6,000 per month working for the Rebel Alliance. Apart from pay, Lando is indifferent between working as a smuggler and working for the Rebel Alliance.Fuel$4,000Maintenance$12,000Weapons$6,000Bribes$3,000 In the long run, we would expect Lando to:
A. continue smuggling since his economic profit from smuggling is positive. B. join the Rebel Alliance since his economic profit from smuggling is negative. C. continue smuggling since his accounting profit from smuggling is positive. D. join the Rebel Alliance since his accounting profit from smuggling is negative.
Exporters employ an export management company as part of an indirect exporting strategy.
a. true b. false