________: the process of purchasing commodities in one market at a low price and rapidly selling them in another market at a higher price

The number of Compact Discs purchased by a consumer depends on the price of the discs as well as the prices of all other goods purchased

a. True b. False Indicate whether the statement is true or false

When Andrew earns no income, his base consumption is $500 . When he earns $3,000 per week, he consumes $2,100 per week and saves the rest. If his weekly income increases by $1,000 . then his total consumption is expected to increase to _____

a. $5,800 b. $3,300 c. $6,900 d. $1,500