First, let us start with a little test of your understanding of a basic economic concept, namely demand. Consider the following statement: The price of eating away from home (eating out) rises so demand for away-from-home meals falls. In the most fundamental economic sense, is this statement accurate? Explain.Second, what are some of the areas consumers, rather than business firms, might use net present value analysis to make decisions? Be sure you review the method and goals of such analysis before trying to respond to this question.
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