If an individual's indifference curve map does not obey the assumption of a diminishing MRS, then:
a. the individual will not maximize utility.
b. the individual will buy none of good x.
c. tangencies of indifference curves to the budget constraint may not be points of utility maximization.
d. the budget constraint cannot be tangent to an appropriate indifference curve.
c
Economics
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If the price of apples rises from $.50 to $1.50 and quantity demanded falls from 1,000 to 900, we can conclude that the price elasticity for apples is
a. -20. b. inelastic. c. elastic. d. unitary.
Economics
Adam Smith describes a visit to a car factory when discussing economies of scale in his book An Inquiry into the Nature and Causes of the Wealth of Nations
a. True b. False Indicate whether the statement is true or false
Economics