An increase in autonomous consumption, an increase in disposable income, or a decrease in the marginal propensity to consume can all increase consumption
Indicate whether the statement is true or false
False
You might also like to view...
Changes in short-run total costs result from changes in
A. The price elasticity of demand. B. Profit. C. Variable costs. D. Fixed costs.
Suppose that Verizon Wireless has hired you as a consultant to determine what price it should set for calling services. Suppose that an individual's inverse demand for wireless services in the greater Boston area is estimated to be P = 100 ? 33Q and the marginal cost of providing wireless services to the area is $1 per minute. What is the optimal two-part price that you would suggest to Verizon?
A. Charge a fixed fee = $3 and a usage fee of $0.33 per minute. B. Charge a fixed fee = $3 and a usage fee of $3 per minute. C. Charge a fixed fee = $148.50 and a usage fee of $1 per minute. D. Charge a fixed fee = $95.5 and a usage fee of $1 per minute.