With two-part pricing A) the consumer puts down a deposit and ...

[sheilaspns]

With two-part pricing
 
  A) the consumer puts down a deposit and then pays the rest when she picks up the goods purchased.
  B) the average price paid varies with the number of units purchased.
  C) the consumer is limited in the number of units that can be purchased.
  D) consumers are required to buy two units of a good.

Question 2

Using the CPI to compensate workers for inflation is appropriate because, in the face of a change in relative prices, people should be allowed to purchase the same bundle as they did before the price changes.
 
  Indicate whether the statement is true or false

[essyface1]

Answer to Question 1

B

Answer to Question 2

False. This assumes that people would still prefer the original bundle. Because they are facing a new set of relative prices, compensating people so that they could purchase the original bundle will allow them to be able to achieve a higher level of utility than they did before the price changes.

[sheilaspns]

Correct answers!

[essyface1]

Great! Please up vote