Suppose Hamburgers Are on the Horizontal Axis and All Other

question 30

Multiple Choice

Suppose hamburgers are on the horizontal axis and all other goods on the vertical axis.John noticed that since the price of hamburgers has increased,the total amount he spends on hamburgers each month increased.Given this information we can conclude that John's price-consumption curve for hamburgers and all other goods is:

• A)positively sloped.
• B)negatively sloped.
• C)horizontal.
• D)U-shaped.

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Definitions:

Perfectly Competitive

A perfectly competitive market is characterized by many buyers and sellers, homogeneous products, free entry and exit, and perfect information.

Price Maker

A market participant with the power to influence the price of a good or service by controlling its supply, its demand, or both.

Perfect Competition

A market structure characterized by many buyers and sellers, where all firms sell identical products and no single buyer or seller can influence the market price.

Identical Goods

Products that are exactly the same in every aspect, leading consumers to have no preference for one product over another based on characteristics, brand, or quality.