Tastes for perfect substitutes are both homothetic and quasilinear.
Answer the following statement true (T) or false (F)
True
Rationale: The MRS for such tastes is the same everywhere --- which implies it is the same along any ray from the origin (required for homotheticity) and along any vertical or horizontal ray (implying quasilinearity in both goods).
Economics
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Exhibit 13-1 Consumer Price Index Year ConsumerPrice Index 1 100 2 110 3 115 4 120 5 125 As shown in Exhibit 13-1, the rate of inflation for Year 5 is:
A. 4.2 percent B. 5 percent. C. 20 percent. D. 25 percent.
Economics
A market in which firms can enter if they choose and exit without losing money invested is
A. pure monopoly. B. duopoly. C. contestable. D. a market where there are kinked demand curves.
Economics