Suppose a consumer spends her income on two goods: iTunes music downloads and books. The consumer has $100 to allocate to these two goods, the price of a downloaded song is $1, and the price of a book is $20 . What is the maximum number of books the consumer can purchase?

Aggregate expenditure includes consumption spending, unplanned investment spending, government purchases, and net exports

Indicate whether the statement is true or false

Higher prices can discourage use/consumption, which in turn may better allocate scarce resources.

Answer the following statement true (T) or false (F)