Author Question: Demand curves and other economic relationships A) are always linear. B) produce linear ... (Read 121 times)

c0205847 · **on:** Jul 1, 2018

Demand curves and other economic relationships

A) are always linear.
B) produce linear regression equations.
C) can take many different functional forms.
D) are dependent upon the type of advertising done.

Question 2

Can it be efficient for one trader to consume all units of the goods while the other trader consumes nothing? In other words, does this point lie on the contract curve?

What will be an ideal response?

ntsoane kedibone · **Reply #1 on:** Jul 1, 2018

Answer to Question 1

C

Answer to Question 2

Yes, it is a Pareto Optimal point (though perhaps socially undesirable for obvious reasons). In order to improve the utility of one consumer, we must reduce the consumption of the other, thereby making that other consumer worse off.