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 51 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?

There are 20 feet of blood vessels in each square inch of human skin.

Did you know?

Green tea is able to stop the scent of garlic or onion from causing bad breath.

Did you know?

Most women experience menopause in their 50s. However, in 1994, an Italian woman gave birth to a baby boy when she was 61 years old.

Did you know?

The senior population grows every year. Seniors older than 65 years of age now comprise more than 13% of the total population. However, women outlive men. In the 85-and-over age group, there are only 45 men to every 100 women.

Did you know?

All patients with hyperparathyroidism will develop osteoporosis. The parathyroid glands maintain blood calcium within the normal range. All patients with this disease will continue to lose calcium from their bones every day, and there is no way to prevent the development of osteoporosis as a result.

Wheat and Cotton Prices and Consumer Price Indexes, 1865–1896 Wheat and Cotton Prices and Consumer Price Indexes, 1865–1896
MSDS labels provide an abridged version of substance hazards information and must be permanently ... MSDS labels provide an abridged version of substance hazards information and must be permanently ...
Professional association conventions provide opportunities for networking with other massage ... Professional association conventions provide opportunities for networking with other massage ...
Ecosystem goods and services and monetary values Ecosystem goods and services and monetary values
Food Labels Provide Nutrient Content Information Food Labels Provide Nutrient Content Information
Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in ... Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in ...
Video: Muscle cell structures - actin, myosin and titin filaments

For a complete list of videos, visit our video library