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nevsk [136]
3 years ago
5

When a price changes, consumers have an incentive to consume less of the good with a relatively higher price and more of the goo

d with a relatively lower price. What is this an explanation for?
A) Demand Effect

B) Supply Effect

C) Income Effect

D) Substitution Effect

Question 37 (1 point)
A higher price means that, in effect, the buying power of income has been reduced, even though actual income has not changed. What is this the explanation for?


A) Income Effect

B) Supply Effect

C) Substitution Effect

D) Demand Effect

Question 38 (1 point)
If Australia holds an absolute advantage in didgeridoos and Japan holds an absolute advantage in katana blades, both countries could be made better off if they specialize in those respective goods and trade.

True
False
Question 39 (1 point)

We must learn to ignore sunk costs when making decisions.
True
False

Question 40 (1 point)

Allocative efficiency takes place at every point along the production possibilities frontier.

True
False
Geography
1 answer:
Doss [256]3 years ago
6 0

Answer:

D

Explanation:

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