This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose two goods coffee and creamer provide the consumer with utility but only if they are consumed ... (Read 13 times)

SO00

  • Hero Member
  • *****
  • Posts: 568
on: Jul 1, 2018
Suppose two goods coffee and creamer provide the consumer with utility but only if they are consumed in fixed proportions. An increase in the price of coffee will yield
 a. a substitution effect and an income effect in opposite directions.
  b. a substitution effect and an income effect in the same direction.
  c. a substitution effect but no income effect.
  d. an income effect but no substitution effect.

Question 2

If products similar to the intermediate good are sold, an approximation to the correct transfer price is
 a. average costs
  b. average fixed costs
  c. average variable costs
  d. the market price


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ktidd

  • Sr. Member
  • ****
  • Posts: 319
Reply #1 on: Jul 1, 2018
Answer to Question 1

d

Answer to Question 2

d


SO00

  • Hero Member
  • *****
  • Posts: 568
Reply #2 on: Jul 1, 2018
Correct answers!


ktidd

  • Sr. Member
  • ****
  • Posts: 319
Reply #3 on: Jul 1, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Did you know?

Vampire bats have a natural anticoagulant in their saliva that permits continuous bleeding after they painlessly open a wound with their incisors. This capillary blood does not cause any significant blood loss to their victims.

Did you know?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

A utility knife uses replaceable blades and can cut carpet and other materials. A utility knife uses replaceable blades and can cut carpet and other materials.
Professional association conventions provide opportunities for networking with other massage ... Professional association conventions provide opportunities for networking with other massage ...
Nutrient-Dense Food Choices Nutrient-dense foods provide more nutrition per calorie and fewer solid Nutrient-Dense Food Choices Nutrient-dense foods provide more nutrition per calorie and fewer solid
Wood coffee table Wood coffee table
Handcrafted wooden coffee table Handcrafted wooden coffee table
Video: Plant Defense Mechanisms from Pathogens

For a complete list of videos, visit our video library