In the above figure, Brendan originally consumes at point A. If his income rises and both compact discs and haircuts are normal goods then he could begin consuming at point

Which of the following is NOT subject to a network effect?

A) the layout of the keys on your keyboard B) rotating your tires every six months C) using a fax machine D) purchasing a new high-definition DVD player

The economy's self-correcting mechanism is such that demand shocks are offset in the long run by shifts of aggregate supply and supply shocks are offset by shifts of aggregate demand

a. True b. False