For unlimited access to Class Notes, a Class+ subscription is required.
59) If, as shown in the diagram, the household still saves 350K when the interest rate increases to r = 40%, the substitution and income effects on Cp are A) 50; -50 B) 50; 50 C) -50; 50 D)-50; -50 E) 0; 0 and
Quantity
Total Revenue
Total Cost
0
$0
$10
1
$9
$14
2
$18
$19
3
$27
$25
4
$36
$32
5
$45
$40
6
$54
$49
7
$63
$59
8
$72
$70
9
$81
$82
How many units of output will be produced at the profit maximization level?
