A budget line is constructed to show
a. how consumers who budget their expenditures achieve more satisfaction than those who do not.
b. the set of all baskets that the consumer can afford, given prices and his or her income.
c. the set of all baskets that the consumer would be willing to purchase given various prices for the goods in the basket.
d. the set of all baskets that the consumer considers equally desirable.
b. the set of all baskets that the consumer can afford, given prices and his or her income.
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An increase in disposable income ________
A) has no effect on the supply of loanable funds curve B) shifts the supply of loanable funds curve rightward C) shifts the supply of loanable funds curve leftward D) results in movement up the supply of loanable funds curve
If marginal revenue is less than price for a firm, it must be true that the firm
a. is a monopoly b. is in perfect competition c. is in monopolistic competition d. faces a perfectly elastic demand curve e. faces a downward-sloping demand curve