If the prices of all goods increase by the same proportion as income, the quantity demanded of good x will:
a. decrease.
b. increase.
c. remain unchanged.
d. change in a way that cannot be determined from the information given.
c
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What will be an ideal response?
What is the relationship among the following variables for a perfectly competitive firm: the market price, average revenue and marginal revenue?
A) As a firm lowers the market price to sell more output, marginal revenue and average revenue will be less than the market price. B) Average revenue is equal to marginal revenue; average revenue is greater than the market price. C) The market price is equal to both average revenue and marginal revenue. D) Average revenue is equal to the market price; average revenue is greater than marginal revenue.