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Author Question: The compensated demand curve holds the consumer's utility fixed as the price changes. Indicate ... (Read 64 times)

MirandaLo

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on: Jul 1, 2018
The compensated demand curve holds the consumer's utility fixed as the price changes.
 
  Indicate whether the statement is true or false

Question 2

Suppose the price of beans rises from 1.00 a pound to 2.00 a pound, quantity demanded falls from 10 units to 6 units. In this example, the demand for beans is said to be
 
  A) relatively elastic.
  B) relatively inelastic.
  C) perfectly elastic.
  D) perfectly inelastic.


lucas dlamini

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Reply #1 on: Jul 1, 2018
Answer to Question 1

True . Along the compensated demand curve, income adjusts such that utility does not change.

Answer to Question 2

B


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