Expectations that the price level will increase in the future will:
a. shift the current consumption function upward.
b. make the current consumption function steeper.
c. make the current consumption function flatter.
d. result in a downward movement along the current consumption function.
e. shift the current consumption function downward.
Question 2
The pig farm industry is perfectly competitive. Which of the following is true?
a. Since the industry is perfectly competitive, price and quantity are at the socially efficient levels.
b. The competitive price is higher and quantity lower than the socially efficient point.
c. The competitive price is higher and quantity higher than the socially efficient point.
d. The competitive price is lower and quantity higher than the socially efficient point.
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