To Conduct a Partial Equilibrium Analysis of a Change in Consumer

question 172

Multiple Choice

To conduct a partial equilibrium analysis of a change in consumer preferences toward coffee and away from tea, you must consider

• A) changes in the equilibrium price and quantity of coffee.
• B) changes in the amount of resources allocated to the production of coffee.
• C) changes in the price of resources allocated to the production of coffee.
• D) all of the above

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Definitions:

Sinking Fund

A reserved fund into which an organization sets aside money over time, to repay debt or replace a significant asset in the future.

Pension Plan

A type of retirement plan where an employer contributes to a pool of funds set aside for an employee's future benefit.

Contractual Agreement

A legally binding agreement between two or more parties outlining the terms and conditions of a deal.

Benefits

Various forms of non-wage compensations provided to employees in addition to their normal wages or salaries.