If the cost of transportation increases by 20 percent, then, other things the same, the CPI is likely to increase by about

Which of the following statements is true when the consumer is in utility-maximizing equilibrium?

A) The number of units of each good purchased is equal. B) The prices of the goods in question must be equal. C) The total benefits the consumer receives from every good consumed must be the same for all goods. D) The rate at which the consumer is willing to trade one good for another is equal to the ratio of their market prices.

According to the search model, a computerized used car search service should

a. reduce the amount of search b. not affect the amount of search c. increase price dispersion d. reduce price dispersion e. lower the marginal benefit of search