If two goods x and y are perfect complements, then if the price of x falls, the entire change in the demand for x is due to the income effect.

There is a double coincidence of wants when

A) person 1 has what person 2 wants, who in turn wants what person 3 has. B) person 1 has what person 2 wants, and person 2 has money. C) person 1 has what person 2 wants, and person 2 has what person 1 wants. D) person 1 has money, and person 2 has what person 1 wants.

Which of the following is true about a monopoly?

A. A monopoly charges a higher price and produces a lower output level than if the market were competitive. B. A monopoly is guaranteed an economic profit. C. A monopoly charges the highest possible price. D. A monopoly will shut down whenever losses are incurred.