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:

Pallets of Ice Cream

Large, flat transport structures loaded with multiple packages or containers of ice cream, used for efficient handling and storage.

Act Diplomatically

The skill of handling affairs without causing offense, often by being tactful, sensitive, and prudent in communication and decision-making.

Veracity of Claims

The truthfulness and accuracy of statements or promises made, especially regarding product benefits or services in advertising.

Nonverbal Selling Technique

Sales strategies that rely on body language, gestures, and facial expressions rather than spoken words to influence buyers.