Author Question: People consume more fresh fruit in the summer than during the rest of the year, yet the prices of ... (Read 109 times)

rl · **on:** Jun 29, 2018

People consume more fresh fruit in the summer than during the rest of the year, yet the prices of fresh fruit are lower in the summer than in other seasons. What accounts for this?

A) Fresh fruit is not subject to the law of supply.
B) The supply of fresh fruit increases in the summer.
C) Fresh fruit is an inferior good.
D) Fresh fruit is not subject to the law of demand.

Question 2

Which of the following is NOT an assumption of the classical model?

A) Wages and prices are flexible.
B) People are motivated by self-interest.
C) Money illusion exists.
D) Pure competition exists.