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

Author Question: Assume a distant tribe only harvests breadfruit and its entire livelihood depends on it. If the ... (Read 146 times)

CQXA

  • Hero Member
  • *****
  • Posts: 546
on: Jun 29, 2018
Assume a distant tribe only harvests breadfruit and its entire livelihood depends on it. If the price of breadfruit were to rise suddenly how might it be possible that this tribe would actually consume more breadfruit?
 
  What will be an ideal response?

Question 2

A monopoly that can perfectly price discriminate creates no deadweight loss.
 
  Indicate whether the statement is true or false


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

orangecrush

  • Sr. Member
  • ****
  • Posts: 350
Reply #1 on: Jun 29, 2018
Answer to Question 1

The substitution effect would cause a decline in the consumption of bread fruit ceteris paribus. However, because breadfruit is the principle means by which the tribe earns its income there is also an income effect. If breadfruit is a normal good and the income effect is strong enough it can outweigh the substitution effect.

Answer to Question 2

TRUE


CQXA

  • Member
  • Posts: 546
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

essyface1

  • Member
  • Posts: 347
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

Malaria mortality rates are falling. Increased malaria prevention and control measures have greatly improved these rates. Since 2000, malaria mortality rates have fallen globally by 60% among all age groups, and by 65% among children under age 5.

Did you know?

More than 30% of American adults, and about 12% of children utilize health care approaches that were developed outside of conventional medicine.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

Hippocrates noted that blood separates into four differently colored liquids when removed from the body and examined: a pure red liquid mixed with white liquid material with a yellow-colored froth at the top and a black substance that settles underneath; he named these the four humors (for blood, phlegm, yellow bile, and black bile).

Cougar conservation depends on preservation of their habitat. Cougar conservation depends on preservation of their habitat.
Blood-typing and cross-reactions: The blood type depends on the presence of surface antigens (agglut Blood-typing and cross-reactions: The blood type depends on the presence of surface antigens (agglut
Dimmer Distant Supernova Dimmer Distant Supernova
Biodiversity Depends on the Size of Habitat Biodiversity Depends on the Size of Habitat
Finishing techniques to entire leg. Start with basic effleurage from ankle to hip. Redrape the leg. ... Finishing techniques to entire leg. Start with basic effleurage from ankle to hip. Redrape the leg. ...
Apply oil or lotion to the entire arm from distal to proximal, including around the shoulder. Apply oil or lotion to the entire arm from distal to proximal, including around the shoulder.
Video: Lactation and Breast Feeding

For a complete list of videos, visit our video library