The wealth effect points out that consumption decreases when ...

[cherise1989]

The wealth effect points out that consumption decreases when people's real wealth decreases.
 
  Indicate whether the statement is true or false

Question 2

Sarah's Soothing Diapers, Inc and Orville's Odorless Diapers, Inc are duopolists, who have agreed to collude. Orville has decided that he will comply with the collusive agreement as long as Sarah cooperated in the previous period.
 
  But if Sarah cheated in the previous period, Orville will punish Sarah by cheating in the current period. Orville's strategy is referred to as a A) Nash strategy.
  B) tit-for-tat strategy.
  C) trigger strategy.
  D) monkey-see, monkey-do strategy.

[ApricotDream]

Answer to Question 1

TRUE

Answer to Question 2

B

[cherise1989]

Correct answers!

[ApricotDream]

Great! Please up vote