Author Question: If insured drivers decide to drive more recklessly than uninsured drivers do, then an adverse ... (Read 109 times)

Yolanda · **on:** Jun 29, 2018

If insured drivers decide to drive more recklessly than uninsured drivers do, then an adverse selection has occurred.

Indicate whether the statement is true or false

Question 2

In the above figure, income is 8, the price of a soft drink is 1, and the initial price of a milkshake is 2. If the price of a milkshake decreases to 1, milkshakes are revealed to be

A) an inferior good.
B) a normal good.
C) less preferred than soft drinks.
D) None of the above answers is correct.