Phantom Demand Is Created by Over-Ordering During Peak Demand

question 16

True/False

Phantom demand is created by over-ordering during peak demand.

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Definitions:

Perfect Complements

Goods that are often consumed together in fixed proportions, such that demand for one increases demand for the other.

Cardinal Utility Functions

Utilize numerical values to represent the level of satisfaction or utility that consumers derive from different bundles of goods and services.

Ordinal Utility Functions

A representation of a consumer's preference ranking for different bundles of goods, without specifying the exact level of satisfaction.

Basic Assumptions

Foundational beliefs or principles that are accepted as true without proof, forming the basis of further argument or reasoning.