What is an indifference curve?
A) It is a curve that shows the combinations of consumption bundles that give the consumer the same utility.
B) It is a curve that shows the total utility and the marginal utility derived from consuming a bundle of goods.
C) It is a curve that ranks a consumer's preference for various consumption bundles.
D) It is a curve that shows the tradeoff a consumer faces among different combinations of consumption bundles.
A
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If the government pays a per-unit subsidy to the producer of a service, we would expect to see a(n) I. increase in the quantity demanded. II. decrease in the out-of-pocket price paid by consumers. III
increase in the quantity supplied by producers. A) I only B) both I and II only C) both II and III only D) I, II, and III
If price elasticity of supply is less than 1
A) supply is elastic. B) demand is elastic. C) demand is inelastic. D) supply is inelastic.