Question

question 37 · 1 point the typical response to a lower price for a good is that a person chooses to consume more of it. this is because of select the correct answer below: the income effect only the substitution effect only neither the income nor the substitution effects both the substitution and income effects feedback content attribution question 38 · 1 point which two of the following could be examples of fixed inputs for a restaurant? select all that apply: electricity ingredients machinery building

Explanation:

For question 37, when the price of a good decreases, the income - effect makes consumers feel wealthier and they can afford more of all normal goods. The substitution - effect makes the good relatively cheaper compared to others, so consumers choose to consume more of it. For question 38, fixed inputs are those that do not change in the short - run. Electricity and ingredients can vary with production level, while machinery and building are typically fixed in the short - run for a restaurant.

Answer:

Question 37: D. both the substitution and income effects
Question 38: C. machinery, D. building