Author Question: Suppose you only consume rice and bananas. Can both of these goods be Giffen goods in your ... (Read 72 times)

09madisonrousseau09 · **on:** Jul 1, 2018

Suppose you only consume rice and bananas. Can both of these goods be Giffen goods in your consumption?

A) Yes, this is possible
B) No, at least one of the goods must be normal
C) No, they both can be inferior, but at least one of the goods cannot be a Giffen good
D) We need more information about the goods to answer this question

Question 2

The kinked demand curve model is based on the assumption that each firm

A) considers its rival's output to be fixed.
B) considers its rival's price to be fixed.
C) believes rivals will match all price changes.
D) believes rivals will never match price changes.
E) none of the above