The compensation variation and equivalent variation will be closer to each other when
A) the income elasticity is greater.
B) the budget share is greater.
C) the price change is smaller.
D) the income elasticity is smaller.
D
Economics
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If a firm's MRP of capital < MFC, the firm should
a. lower the interest rate b. decrease its quantity demanded of loanable funds c. increase its quantity demanded of loanable funds d. hire more labor e. raise the interest rate
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A consumer's budget constraint for goods X and Y is determined by how much the consumer likes good X relative to good Y
a. True b. False Indicate whether the statement is true or false
Economics