A consumer cannot gain consumer’s surplus if she purchases more than one unit of a good.
Answer the following statement true (T) or false (F)
False
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"Because apples and oranges are substitutes, an increase in the price of oranges will cause the demand for apples to increase
This initial shift in demand for apples results in a higher price for apples; this higher price will cause the demand curve for apples to shift to the right." Which of the following correctly comments on this statement? A) The statement is false because oranges are inferior goods; apples are normal goods. B) The statement is false because one cannot assume that apples and oranges are substitutes for all consumers. C) The statement will be true if consumer tastes for apples and oranges do not change. D) The statement is false because a change in the price of apples would not change the demand for apples.
Use the figure below to answer the following question.An increase in price, all else held constant, would cause a change from
A. point 4 to point 5. B. point 1 to point 3. C. point 3 to point 4. D. point 5 to point 1.