Author Question: The consumption function shows that when disposable income increases by one dollar, consumption ... (Read 172 times)

lunatika · **on:** Jun 29, 2018

The consumption function shows that when disposable income increases by one dollar, consumption expenditure

A) does not change.
B) increases by more than a dollar.
C) increases by one dollar.
D) decreases by less than a dollar.
E) increases by less than a dollar.

Question 2

The above figure shows the market for game day t-shirts. If the price of t-shirts is 8, then

A) the market is in equilibrium.
B) there is a shortage and the price of t-shirts will rise.
C) there is a shortage and the price of t-shirts will fall.
D) there is a surplus and the price of t-shirts will fall.
E) there is a surplus and the price of t-shirts will rise.