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

Author Question: Suppose two goods coffee and creamer provide the consumer with utility but only if they are consumed ... (Read 37 times)

SO00

  • Hero Member
  • *****
  • Posts: 568
on: Jul 1, 2018
Suppose two goods coffee and creamer provide the consumer with utility but only if they are consumed in fixed proportions. An increase in the price of coffee will yield
 a. a substitution effect and an income effect in opposite directions.
  b. a substitution effect and an income effect in the same direction.
  c. a substitution effect but no income effect.
  d. an income effect but no substitution effect.

Question 2

If products similar to the intermediate good are sold, an approximation to the correct transfer price is
 a. average costs
  b. average fixed costs
  c. average variable costs
  d. the market price


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ktidd

  • Sr. Member
  • ****
  • Posts: 319
Reply #1 on: Jul 1, 2018
Answer to Question 1

d

Answer to Question 2

d


SO00

  • Hero Member
  • *****
  • Posts: 568
Reply #2 on: Jul 1, 2018
Correct answers!


ktidd

  • Sr. Member
  • ****
  • Posts: 319
Reply #3 on: Jul 1, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

Did you know?

Nitroglycerin is used to alleviate various heart-related conditions, and it is also the chief component of dynamite (but mixed in a solid clay base to stabilize it).

Did you know?

The Centers for Disease Control and Prevention has released reports detailing the deaths of infants (younger than 1 year of age) who died after being given cold and cough medications. This underscores the importance of educating parents that children younger than 2 years of age should never be given over-the-counter cold and cough medications without consulting their physicians.

Tall safety stands can be used to provide additional support for the vehicle while on the hoist. Tall safety stands can be used to provide additional support for the vehicle while on the hoist.
Structural MRI can be used to provide three-dimensional images of the entire brain. (Courtesy of ... Structural MRI can be used to provide three-dimensional images of the entire brain. (Courtesy of ...
Professional association conventions provide opportunities for networking with other massage ... Professional association conventions provide opportunities for networking with other massage ...
Shippers Declaration for Dangerous Goods Shippers Declaration for Dangerous Goods
PEPCK isozymes provide alternative routes to PEP and cytoplasmic reducing equivalents PEPCK isozymes provide alternative routes to PEP and cytoplasmic reducing equivalents
Ecosystem goods and services and monetary values Ecosystem goods and services and monetary values
Video: Supine Position

For a complete list of videos, visit our video library