A consumer's reservation price is the
A) amount she will pay for a hotel or airline reservation.
B) minimum amount she will pay for a good or service.
C) price that maximizes her surplus.
D) maximum amount she will pay for a good or service.
D
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Consider the following:
(i) Suppose Laurent has $60 per week to spend on food and clothing. The price of food is $4 per unit, and the price of clothing is $6 per unit. Sketch Laurent's budget line on the axes provided.
(ii) Laurent applies to the local government for food stamps and is given $40 worth of food stamps per week. On the axes, show how the receipt of food stamps affects Laurent's budget line.
(iii) Suppose that instead of food stamps, Laurent receives $40 in cash per week from a relative. On the axes, show how this gift affects Laurent's budget line.
(iv) Add appropriate indifference curves to the diagram to show that a gift of $40 in cash could make Laurent better off than the receipt of $40 in food stamps.
According to Olson the stationary bandit will be interested in growth and welfare:
a. True b. False
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What will be an ideal response?
Personal income taxes and corporate income taxes are examples of ____ taxes.
A. variable B. sales C. fixed D. disposable