Answer : It is uncertain. As it depends upon the nature of the good X. If good X is normal good than law of demand applies but in case good X is luxurious than demand does not decreases with an increase in the price of goods. As law of demand does not applied here.
An increase in the price of X will lead the consumer to purchase less X. TRUE...
Explain whether the following statement is true, false, or uncertain. A consumer consumes two categories of goods x and y. If an increase in the price of y does not increase the consumer's consumption of x, then this consumer must consider x to be an inferior good.
"A
rational consumer prefers more of good x to less. If the price of
good x rises and the prices of all other goods remain constant,
then the consumer must necessarily demand less of x”. Is it true or
false?
The
answer states it false. But why can't it be true?
I
found that due to the substitution effect, the new optimal bundle
must be on the red area. And I thought the blue area shouldn't be
solid due to...
Oligopolies, in employing price power (restricting supply; shifting supply leftward or inward), increase consumer surplus and decrease producer surplus and deadweight loss. true or false?
The purpose of a strategy is to reduce supplier cost and increase consumer value. True False
A5-6. Ceteris paribus, an increase in the domestic price level increases the price of domestic goods increases their price relative to foreign goods resulting in a downward shift of aggregate expenditures and a leftward shift of the aggregate demand curve. True, False Uncertain? Explain in detail.
If the price of good X is $4, the price of good Y is $2, and the marginal rate of substitution is currently 4, how could consumer increase their utility without decreasing their total expenditure? a) Purchase more Y and less X b) Purchase more X and less Y c) Do nothing; cannot improve utility while keeping spending the same d) Purchase more of X and Y
Explain why each of the following statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate. Unsupported answers will receive no marks. It is the explanation that is important. a. An increase in consumer incomes will result in an increase in the price of any consumer goods. b. If the unemployment rate decreases, we can be sure that the number of unemployed workers has decreased.
True, False, or Uncertain: Increases in productivity lead to lower wages because firms don’t need as many workers as before to produce the same number of goods. Explain Why this is or is not true
A good salesperson perceives objections as a hindrance to the purchase decision. True False A salesperson’s responsibilities usually end with making the sale and placing the order. True False With regard to social media, the interaction between producer and consumer becomes less about entertaining and more about listening, influencing, and engaging. True False
Typically, more people are involved in a single business purchase decision than in a consumer purchase decision. True False