Identify the correct statement.
a. If the price level increases, we feel poorer and buy less
b. If the price level increases, we feel richer and buy more.
c. If domestic prices increase, we substitute domestic goods for imported ones.
d. An increase in the price of a particular good leads to a substitution.
e. A decrease in the price of a particular good is like an increase in income and therefore we buy more.
a
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Kyle and Stan are playing Odds or Evens, where Kyle is designated as the "odd" player and Stan is designated as the "even" player. They decide to play the game 10 times. Kyle's ideal mixture is to
A) "shoot 1" every time since he is the "odd" player. B) "shoot 2" every time since Stan is the "even" player. C) "shoot 1" 50% of the time and "shoot 2" 50% of the time. D) Kyle's ideal mixture depends on Stan's ideal mixture.
If Project X has a cost of $6 and provides a benefit of $10, and Project Y has a cost of $25 and provides a benefit of $27, which of the following statements is true?
A) An individual can optimize by choosing Project X. B) An individual can optimize by choosing Project Y. C) Switching from Project X to Project Y increases net benefit by $2. D) Switching from Project Y to Project X decreases net benefit by $2.