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:

Human Functioning

The range of human activities and capacities, including physical, cognitive, emotional, and social aspects.

Intellectual

pertains to activities or functions of the mind characterized by complex cognitive faculties, such as thinking, reasoning, and understanding.

Role Construct Repertory

A psychological assessment tool that evaluates personal construct systems to understand how individuals perceive their relationships and social world.

Complexes

Psychological patterns often unconscious, consisting of memories, perceptions, and desires deeply influencing an individual's attitudes and behaviors.