Compare two consumers facing a choice between a cash gift or merchandise of greater value.
Show, using a sketch graph, why a consumer prefers a cash gift rather than a larger gift of merchandise.
40.Compare two consumers facing a choice between a cash gift or merchandise of greater value.
Show, using a similar sketch graph, why another consumer chooses the merchandise rather than the cash grant.
41.Provide one reason why it is difficult to estimate the rate of inflation in the economy (even if you had a perfect source of data on prices).
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