1. It is impossible for a price change to cause no substitution, income, or toal effects. If you believe the statement is false, sketch a graph demonstrating how a price change could cause no substitution, income, or total effects.
True or false
2. A large pharmaceutical company invents a very small device that can be implanted in people with diabetes to provide time-released amounts of insulin. A patent for this invention will set up a temporary oligopoly for the company.
True or false
3. It is impossible for a price change to cause no substitution, income, or total effects. Could you sketch a graph demonstrating if it is false?
True or false