The marginal propensity to consume is greater than zero but less than one

If Ben becomes less likely to buy smoke detectors after he has fire insurance, he is illustrating

A) moral hazard. B) adverse selection. C) the lemon problem. D) the free rider problem.

Ceteris paribus, which of the following would cause a decrease in the demand for HD TVs, a normal good?

A. decline in the price of HD TVs. B. increase in the price of HD TVs. C. increase in consumers' income. D. decrease in consumers' income.