The Multiplier Is the Ratio of the Change in ________

question 313

Multiple Choice

The multiplier is the ratio of the change in ________ to a change in ________.

• A) the MPC; the MPS
• B) the equilibrium level of output; some autonomous variable
• C) the level of saving; the level of consumption
• D) autonomous consumption; induced consumption

---

Definitions:

Monopolist

An entity with exclusive control over the supply of a particular good or service, setting prices without competition.

Pure Monopolist

A market structure where a single firm completely dominates the market, with no close substitutes for its product, allowing it to control prices.

Discriminating

The act of making a distinction or differentiating between items, people, or situations, often based on specific criteria.

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different consumers, based on their willingness to pay.