This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose two goods coffee and creamer provide the consumer with utility but only if they are consumed ... (Read 39 times)

SO00

  • Hero Member
  • *****
  • Posts: 568
on: Jul 1, 2018
Suppose two goods coffee and creamer provide the consumer with utility but only if they are consumed in fixed proportions. An increase in the price of coffee will yield
 a. a substitution effect and an income effect in opposite directions.
  b. a substitution effect and an income effect in the same direction.
  c. a substitution effect but no income effect.
  d. an income effect but no substitution effect.

Question 2

If products similar to the intermediate good are sold, an approximation to the correct transfer price is
 a. average costs
  b. average fixed costs
  c. average variable costs
  d. the market price


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ktidd

  • Sr. Member
  • ****
  • Posts: 319
Reply #1 on: Jul 1, 2018
Answer to Question 1

d

Answer to Question 2

d


SO00

  • Hero Member
  • *****
  • Posts: 568
Reply #2 on: Jul 1, 2018
Correct answers!


ktidd

  • Sr. Member
  • ****
  • Posts: 319
Reply #3 on: Jul 1, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Did you know?

On average, the stomach produces 2 L of hydrochloric acid per day.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

MSDS labels provide an abridged version of substance hazards information and must be permanently ... MSDS labels provide an abridged version of substance hazards information and must be permanently ...
As China has embraced its version of capitalism, wealth has grown, as has consumption. Luxury goods ... As China has embraced its version of capitalism, wealth has grown, as has consumption. Luxury goods ...
A shim (or half shim) may be needed to provide the proper clearance between the flywheel teeth of ... A shim (or half shim) may be needed to provide the proper clearance between the flywheel teeth of ...
Professional association conventions provide opportunities for networking with other massage ... Professional association conventions provide opportunities for networking with other massage ...
Growing plants in a container garden can provide healthy, nutritious vegetables for your dinner Growing plants in a container garden can provide healthy, nutritious vegetables for your dinner
An organizational specialist is hired as a consultant to a company planning to open a coffee ... An organizational specialist is hired as a consultant to a company planning to open a coffee ...
Video: Proteins Defined, Hierarchy & Composition of Cells

For a complete list of videos, visit our video library