Money is almost always used to quote prices. This illustrates the function of money as a

If both Ben and Catherine value good X more than good Y, a firm can increase profits by bundling the two products

Indicate whether the statement is true or false

A theory asserts that consumers will purchase less of a good at higher prices than they will at lower prices, ceteris paribus. However, when the average price of cars increased throughout the 1990s, more cars were purchased. Which of the following best explains the apparent conflict between theory and data? a. The ceteris paribus assumption is valid

b. It is likely that variables other than the price and quantity of cars demanded were changing. c. The theory is valid. However, the price and quantity data gathered by researchers was clearly measured incorrectly. d. The theory must be invalid.