For budget spent entirely on two goods

Assignment Help Business Economics

Reference no: EM13896644

For a budget spent entirely on two goods, an increase in the price of one will necessarily decrease the consumption of both if both goods are normal.

True or False: With the use of an appropriate diagram, explain your answer.

Reference no: EM13896644

Questions Cloud

Are coordination costs and contracting costs higher : Major soft drink companies have begun to phase out their previous system of marketing their product through independent bottlers and moved toward company-owned distribution systems. One issue is the coordination of pricing and marketing in the two ty..

Considering expanding product by adding new route connecting : A smaller network carrier (hub and spoke airline) is considering expanding its product by adding a new route connecting its hub with the “fortress hub” of a global network carrier (see Doganis sections 9.6 & 9.7). Use penetration pricing.

Convenience stores total revenue from sales : Suppose your local espresso bar makes the following offer: People who supply their own half-litre carton of milk can buy a cup of cappuccino for only $1.50 instead of the usual $2.50. As a result of this offer, the quantity of cappuccino sold goes up..

The real interest rate : Suppose that you deposit $2,000 in a savings account and a year later you have $2,300. Meanwhile the CPI rose from 110 to 121. The real interest rate is ____%. Enter your answer in the box below

For budget spent entirely on two goods : For a budget spent entirely on two goods, an increase in the price of one will necessarily decrease the consumption of both if both goods are normal.

Aggregate consumption equals : Suppose that GDP equals 10,000, aggregate consumption equals 6,000, net taxes equal 1,500, government spending is 1,700, net exports are 300 and the investment curve is given by the following equation: I=3,300-100r.

Three options for loan-which one is the lowest monthly cost : You have three options for a loan. Which one is the lowest monthly cost?

An increase in government spending : An increase in government spending

Rapid pace of technological change-financial innovation : Given the rapid pace of technological change and financial innovation in financial markets nationally and internationally, would it be economically efficient to not deregulate banking? Explain.

User Account

All Pages