Consider a Society Consisting of Just a Farmer and a Tailor.The

question 8

Multiple Choice

Consider a society consisting of just a farmer and a tailor.The farmer has 10 units of food but no clothing.The tailor has 40 units of clothing but no food.Suppose each has the utility function U = F^1/2C1/2.If the price of clothing is always $1,and the food price is currently $3,then we can conclude

• A)the market is at a competitive equilibrium.
• B)the price of food will drop towards a competitive equilibrium.
• C)the price of food will increase towards a competitive equilibrium.
• D)None of the above.

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Definitions:

Cognitive Therapy

A form of psychotherapy that aims to alter maladaptive thinking patterns, thereby changing behavior and emotional state.

Problematic Thoughts

Thoughts that are disruptive, unhelpful, or negative in nature, often contributing to emotional distress or psychological disorders.

Traditional Cognitive

Refers to approaches or theories in psychology that focus on understanding how people process, store, and retrieve information.

Alienated

Feeling distanced, estranged, or isolated from others or society, often as a result of social structures or personal choices.