An Increase in Autonomous Consumption Means That

question 86

Multiple Choice

An increase in autonomous consumption means that

• A)the consumption function shifts down.
• B)the consumption function shifts up.
• C)the consumption function becomes steeper.
• D)the consumption function becomes less steep.

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Definitions:

Oligopoly

A market structure characterized by a small number of firms whose control over the market is significant enough to influence prices and other market factors.

Cournot Duopoly

A market structure where two firms compete with each other by choosing quantities to produce independently.

Perfect Competition

A market structure characterized by many buyers and sellers, identical products, no barriers to entry or exit, and perfect information.

Monopolistic Competition

A market structure where many firms sell products that are similar but not identical, leading to competition based on price, quality, and marketing.