The consumption function shows that when disposable income ...

[lunatika]

The consumption function shows that when disposable income increases by one dollar, consumption expenditure
 
  A) does not change.
  B) increases by more than a dollar.
  C) increases by one dollar.
  D) decreases by less than a dollar.
  E) increases by less than a dollar.

Question 2

The above figure shows the market for game day t-shirts. If the price of t-shirts is 8, then
 
  A) the market is in equilibrium.
  B) there is a shortage and the price of t-shirts will rise.
  C) there is a shortage and the price of t-shirts will fall.
  D) there is a surplus and the price of t-shirts will fall.
  E) there is a surplus and the price of t-shirts will rise.

[dyrone]

Answer to Question 1

E

Answer to Question 2

B

[lunatika]

TYSM

[Joy Chen]

Excellent