If the demand for a firm's output is perfectly elastic, then the firm's Lerner Index equals

What does willingness to pay measure?

a) the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it b) the amount a seller actually receives for a good minus the minimum amount the seller is willing to accept c) the maximum amount a buyer is willing to pay minus the minimum amount a seller is willing to accept d) the maximum amount that a buyer will pay for a good

Who said: "Wealth has never been a sufficient source of honor in itself. It must be advertised and the normal medium is obtrusively expensive goods."

A. The theory would predict that people's consumption would be greater than their income until their mid to late 20s. B. A person who won a prize would spend at least 50 percent of their winnings in the first year. C. Consumption is greater than income when people reach old age. D. People gear their consumption to their expected earnings more than to their current income.