At the Initial Prices, Teodoro Is a Net Seller of Apples

question 34

Multiple Choice

At the initial prices, Teodoro is a net seller of apples and a net buyer of bananas.If the price of apples decreases and the price of bananas does not change,

• A)the compensating variation must be negative and the equivalent variation positive.
• B)the compensating variation must be positive and the equivalent variation negative.
• C)both the compensating variation and the equivalent variation must be positive.
• D)both the compensating variation and the equivalent variation must be negative.
• E)the compensating variation must be negative but the equivalent variation could be of either sign.

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Definitions:

Line Positions

Roles within an organization directly involved in the core business operations, responsible for achieving company objectives.

Geographical Groupings

The classification of areas or locations based on geographic characteristics or proximity for analysis or organizational purposes.

Sales Territories

Defined geographic areas or customer groups for which individual sales representatives or sales teams are responsible.

Geographic Location

The specific physical location of a place on the Earth's surface.