Which of the following can an economist predict with the most accuracy?
a. how Gwen will respond to an increase in the price of down jackets
b. how Larry, Terry, and Mateo will respond to a decrease in the price of orange juice
c. how a group of ten will respond to an increase in the price of motorcycles
d. how a group of 100 will respond to a decrease in the price of cell phones
d. how a group of 100 will respond to a decrease in the price of cell phones
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Consider the change in the price of a book depicted in the above figure. The original budget line is BC. The new budget line is BD. As a result of this price change, the substitution effect can be represented by a movement from
A) point A to point E. B) point A to point G. C) point F to point G. D) point A to point F.
The full-employment rate of unemployment is zero
Indicate whether the statement is true or false