Which of the following best illustrates the fallacy of composition? O If the price of bread rose, consumers would buy less; if consumers bought less bread, the price of bread would rise. O If Ed "Too Tall" Jones stood up at a basketball game, he could get a better view of the game: if everyone stood up at a basketball game, everyone could have a better view of the game. O High housing prices cause people to buy less housing, but an increase in income might cause them to buy more housing. O If Mr. Johnson had more money, he could afford to buy more goods.

Which of the following best illustrates the fallacy of composition? O If the price of bread rose, consumers would buy less; if consumers bought less bread, the price of bread would rise. O If Ed "Too Tall" Jones stood up at a basketball game, he could get a better view of the game: if everyone stood up at a basketball game, everyone could have a better view of the game. O High housing prices cause people to buy less housing, but an increase in income might cause them to buy more housing. O If Mr. Johnson had more money, he could afford to buy more goods.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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