Author Question: At consumer equilibrium income is allocated to purchases so that the ratio of marginal utility to ... (Read 57 times)

FButt · **on:** Jun 30, 2018

At consumer equilibrium income is allocated to purchases so that the ratio of marginal utility to price is equal for different goods.
a. True
b. False
Indicate whether the statement is true or false

Question 2

If social regulation causes the supply curve in a market to shift up because of higher marginal costs, then:
a. both consumer and producer surplus will decrease.
b. both producer and consumer surplus will increase.
c. consumers will gain at the expense of producers.
d. producers will gain at the expense of consumers.
e. there will be no change in the sum of producer and consumer surplus, although its division may change.