« previous next »

Author Question: The substitution effect A) is always larger than the price effect. B) always decreases purchases ... (Read 20 times)

xroflmao

  • Hero Member
  • *****
  • Posts: 515
on: Jun 29, 2018
The substitution effect
 
  A) is always larger than the price effect.
  B) always decreases purchases of a good as the price of a good rises.
  C) increases purchases of the good as the price rises if the good is a normal good.
  D) is always smaller than the income effect.

Question 2

If Tom's total utility from watching one more minute of television increases but the increase for each additional minute is smaller than the previous minute, he has diminishing marginal utility.
 
  Indicate whether the statement is true or false


trampas

  • Sr. Member
  • ****
  • Posts: 320
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

TRUE


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

The greenhouse effect. The greenhouse effect.
Women who are monozygotic twins and have the same genes are more similar in their marital happiness Women who are monozygotic twins and have the same genes are more similar in their marital happiness
Alan Price - Poor People Alan Price - Poor People
Atmospheric pressure decreases with increase in altitude. Atmospheric pressure decreases with increase in altitude.
The Effect of Using PPP on Comparisons of GDP The Effect of Using PPP on Comparisons of GDP
A car wash reduced the price of a basic wash as a promotion and test of the market. With the ... A car wash reduced the price of a basic wash as a promotion and test of the market. With the ...
Video: Electrical Conduction System of the Heart

For a complete list of videos, visit our video library