The substitution effect explains why there is a direct ...

[bio_gurl]

The substitution effect explains why there is a direct relationship between the price of a product and the quantity of the product demanded.
 
  Indicate whether the statement is true or false

Question 2

Allocative efficiency is achieved when firms produce goods and services
 
  A) that consumers value most. B) at a marginal cost of zero.
  C) at the lowest possible cost. D) at the lowest opportunity cost.

[mceravolo]

Answer to Question 1

FALSE

Answer to Question 2

A

[bio_gurl]

Thanks for the timely response, appreciate it

[cpetit11]

Excellent