Question

When a consumer’s income rises, they will consume more of all goods. True or False? If...

When a consumer’s income rises, they will consume more of all goods.

True or False?

If capital is fixed there is a certain point where adding more labor is counterproductive

true or false ?

The firm supply curve shows the profit-maximizing level of output associated with different product prices.

True or False?

The way we get from individual consumer demand curves to market demand curves is pretty much the same way we get from individual firm supply curves to market supply curves.

True or False?

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Homework Answers

Answer #1

1. False

When income rises, a consumer consumes more of normal good and less of inferior good.

2. True

If capital is fixed, no more labour can be added after a point of time otherwise it will reduce productivity or efficiency.

3. True

The firm's supply curve shows different levels of output of a product and the associated profits at each price level.

4. True

Market demand curve or market supply curve can be calculated by summation of individual demand or supply curves respectively.

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