If indifference curves cross, then:
A) the assumption of a diminishing marginal rate of substitution is violated.
B) the assumption of transitivity is violated.
C) the assumption of completeness is violated.
D) consumers minimize their satisfaction.
E) all of the above
B
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The equilibrium price will fall and the equilibrium quantity might increase, decrease, or stay the same when the
A) demand and the supply of a good both increase. B) demand for a good increases and the supply of it decreases. C) demand for a good decreases and the supply of it increases. D) demand and the supply of a good both decrease.
Refer to Figure 17-2. Suppose the market price of bracelets falls to $2. What happens to the curve given in the diagram?
A) The curve shifts to the left. B) Nothing, because labor's productivity has not changed. C) There will be a movement along the curve. D) We cannot answer the question without knowing if Becca would want to hire more workers.