Economics (MindTap Course List)
Economics (MindTap Course List)
A man asks his brother for $400 to buy a television set. His brother gives him the money, and the man buys a television set. Is it guaranteed that the brother’s $400 went to buy the television set? Why or why not?
Explain the scenario whether it is guaranteed that the brother’s money is used to buy the television set.
According to the scenario, the brother gives money $400 to buy a television set. According to the utility theory, the individual will purchase goods, which give him higher utility. However, a television set is not considered as a nec...
Chapter 32 Solutions
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