--%>

Rational consumer-Relative Prices

I have a problem in economics on rational consumer-Relative Prices. Please help me in the following question. The rational consumer purchasing decisions depend mainly on: (1) Current market prices. (2) Absolute prices. (3) Nominal prices. (4) Monetary prices. (5) Relative prices.

Select the accurate answer from above.

   Related Questions in Microeconomics

  • Q : Excess supply at the minimum price

    Programs which guarantee farmers minimum prices which exceed equilibrium prices will yield: (w) cheaper food for consumers. (x) excess demand in food markets. (y) excess supply at the minimum price. (z) higher equilibrium prices.

  • Q : Problem on economic profits A perfectly

    A perfectly competitive market contain 60 firms, each along with a total cost function of TC = 10y2 + 80 and a marginal cost function of MC = 20y. The market demand function is ymd = 600 - 7py. a. If the market price is $80.00, how much wi

  • Q : College loan-Rational Ignorance Assume

    Assume that a student takes out a college loan which needs 12% annual interest, however later learns that his aunt makes loans to the family members at 5% interest. The student has suffered from the problem termed as: (1) Rational ignorance. (2) Blind indifference. (3

  • Q : Problem regarding marginal factor cost

    In equilibrium for any of profit-maximizing firm, marginal revenue product of the labor: (i) Is equivalent to the change in net revenue related with selling an extra unit of output. (ii) Surpasses the wage rate by maximum possible. (iii) Equivalents marginal factor co

  • Q : History of Labor Union problem Can

    Can someone help me in finding out the right answer from the given options. Working time gone in strikes as the percent of net working time in the United States since from the end of World War II has: (1) Rose to around 20 percent. (2) Reduced to a bit over 6 percent.

  • Q : Present Value and Rates of Return When

    When the annual interest rate is 12 percent and a rental house can be expected to rent perpetually for $1,000 monthly, rough computation suggests the house contain a present value of: (1) $240,000. (2) $144,000. (3) $100,000. (4) $72,000. (5) $12,000.

  • Q : Earn high incomes in purely competitive

    Into a purely competitive market economy, people along with rare and valuable talents would earn high incomes due to: (w) monopsonistic exploitation. (x) interest maximization. (y) economic rent. (z) transfer payments.

    Q : Minimum average costs at production

    Nostalgia Corporation could accomplish minimum average costs for Silver Screen DVDs when this produced: (i) 4 million DVDs. (ii) 6 million DVDs. (iii) 8 million DVDs. (iv) 10 million DVDs. (v) 12 million DVDs.

  • Q : Demands for Labor-Trade off work The

    The demands for labor mainly based on LEAST on the levels of: (i) Labor productivity. (ii) Technology and amounts of other resources used. (iii) Demand for the final products. (iv) Trade-off between work (producing income) and free time.

  • Q : Approximate unitary price elasticity of

    Nostalgia Corporation’s output of “Silver Screen Classic” DVDs consequent to the point where demand has unitary price elasticity is approximately: (1) 3 million copies. (2) 4 million copies. (3) 5 million copies. (4) 6.5 million copi