Multiple Choice
The utility of a consumer durable is uncertain because
A) you cannot predict when it will break down or be replaced.
B) you may buy the product for one price today, but the seller may lower the price tomorrow.
C) you may be unduly influenced by the product's glossy brochure.
D) A and C
Correct Answer:

Verified
Correct Answer:
Verified
Q24: Explain how the terms 'adverse selection' and
Q25: Which of the following is not a
Q26: Consider a consumer who only eats brand
Q27: Adverse selection occurs because of diminishing marginal
Q28: Assume your demand for a can of
Q30: Insurance companies can reduce the moral hazard
Q31: As long as indifference curves are convex
Q32: Utility<br>A) can be used to compare different
Q33: Which of the following is not an
Q34: In which of the following cases is