Essential goods give rise to corner solutions.
Answer the following statement true (T) or false (F)
False
Rationale: On the contrary, essential goods cannot give rise to corner solutions. It can never be optimal to choose a bundle with zero quantity of one of the goods, since that would be the same as choosing zero quantity of all the goods.
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What causes the aggregate demand curve to shift?
What will be an ideal response?
The demand for a good would be more price inelastic
a. the shorter the time the consumer has to adjust to price changes b. the higher the price of the good c. the more the number of good substitutes d. the less essential the nature of the good e. if the supply is more price elastic
Price discrimination refers to
A) selling a product at different prices according to the differences in marginal cost of providing it to different consumers. B) selling a product at different prices, with the price difference being unrelated to differences in marginal cost. C) charging the same prices to all consumers but selling them different quantities. D) a deliberate effort on the part of a monopoly producer to confuse consumers.
Under the Bretton Woods system, a country with a balance of payments deficit
A. could get loans from the U.S. government. B. could devalue if deflationary policies failed to eliminate the deficit. C. was not allowed to devalue under any circumstance. D. was required to devalue its currency immediately.