If a good's price is volume sensitive, the consumer will:
A. choose the bundle on the budget line that lies on the lowest indifference curve.
B. choose the bundle on the budget line where the budget line is "kinked."
C. choose a boundary solution.
D. choose the bundle on the budget line that lies on the highest indifference curve.
D. choose the bundle on the budget line that lies on the highest indifference curve.
You might also like to view...
In November 2008, the air traffic controllers who work at Guam became unionized. What would NOT be a way for the union to influence labor demand?
A) Have monthly training which improves the marginal productivity of the air traffic controllers. B) Support minimum wage laws. C) Creating job certification which limits the number of newly certified air traffic controllers. D) Lobby the government to limit who can apply to be an air traffic controller in Guam to those who are certified through the union.
Which of the following entities was blamed in part for the speculative activity leading to the crash of 1929?
(a) Large manufacturing enterprises (b) Brokers and their firms who extended loans to customers interested in buying stocks on the margin (c) The Federal Reserve System (d) New mom and pop businesses