If the price of something goes up it is always irrational

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If the price of something goes up, it is always irrational to buy more of it.

A consumer would prefer to have his or her income doubled rather than prices of all goods halved.

If there price of a box of Cheerios increases from $3.25 to $3.50, but a consumer continues to buy 1 box per week, then he or she is no worse off due to the price increase.

Purchasers of new cars will be better off if a $500 tax on new car purchases is collected from car sellers rather than from the purchasers themselves.

Consumers will bear more of the burden of a $1/pack cigarette tax than a $1/gallon milk tax.

Suppose that the equilibrium price of HD televisions is $500. Imposing a price ceiling of $400 won't affect the overall efficiency of the HDTV market since the $100 decrease in price simply represents a transfer from suppliers to consumers.

Reference no: EM13371647

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