A consumer prefers market basket A to market basket B, and prefers market basket B to market basket C. Therefore, A is preferred to C. The assumption that leads to this conclusion is:

When there is inflation in the economy, it implies that the:

A. Price index is rising and the purchasing power of money is also rising B. Price index is falling and the purchasing power of money is also falling C. Price index is falling and the purchasing power of money is rising D. Price index is rising and the purchasing power of money is falling

If the price of K declines, the demand curve for the complementary product J will:

A. shift to the left. B. remain unchanged. C. shift to the right. D. decrease.