Think about indifference analysis. If a consumer is indifferent between 5 units of A and 8 units of B, then the consumer would
a. also be indifferent between 4 units of A and 9 units of B
b. also be indifferent between 8 units of A and 5 units of B
c. prefer 6 units of A and 8 units of B
d. give up 1 unit of A to acquire 2 units of B
e. not trade a unit of A for any units of product B
C
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The labor supply curve is backward bending because at higher wages the income effect eventually dominates the substitution effect
Indicate whether the statement is true or false
Suppose three neighbors must vote on the installation of a traffic light that costs $210. The cost of the light will shared by all three
Voter A values the light at $50; voter B values the light at $50; and voter C (who drives the most) values the light at $200. If the voting rule is that the majority wins, does the light get purchased? Is it efficient to purchase the light?