The observation that goods and services flow in one direction and money payments flow in another direction is the principle behind

Identify the correct statement. a. If the price level increases, we feel poorer and buy less

b. If the price level increases, we feel richer and buy more. c. If domestic prices increase, we substitute domestic goods for imported ones. d. An increase in the price of a particular good leads to a substitution. e. A decrease in the price of a particular good is like an increase in income and therefore we buy more.

In a monopolistically competitive market, the consumer receives the benefit of

A) production at minimum average cost. B) production where price equals marginal cost. C) product differentiation. D) allocative efficiency.