To remain in consumer optimum
A) a price increase requires an increase in consumption.
B) a price decrease requires an increase in consumption.
C) a price decrease requires a decrease in consumption.
D) prices must remain static.
Answer: B
Economics
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Refer to Figure 11-13. The lines shown in the diagram are isocost lines. Which of the following shows a decrease in the price of capital while the price of labor remains unchanged?
A) the movement from BF to AF B) the movement from BF to BD C) the movement from AF to BF D) the movement from BF to CE
Economics
A person who practices poisonous snake charming and does not reveal this to her health insurance company before purchasing insurance is an example of
A) moral hazard. B) adverse selection. C) signaling. D) screening.
Economics