1. When two people involved in an exchange say “thank you” afterward, they are merely being polite. __________ (True/False) 2. Consider a transaction in which a consumer buys a toy for $20. The value...

1. When two people involved in an exchange say “thank you” afterward, they are merely being polite. __________ (True/False)

2. Consider a transaction in which a consumer buys a toy for $20. The value of the toy to the buyer is at least $__________, and the cost of producing the toy is no more than $__________.

3. Arrow up or down: Andy buys and eats one apple per day, and smacks his lips in appreciation as he eats it. The greater his satisfaction with the exchange  of money for an apple, the larger the number of smacks. If the price of apples decreases, the number of smacks per apple will __________.

4. Sally sells one apple per day to Andy, and says “caching” to show her satisfaction with the transaction. The greater her satisfaction with the exchange, the louder her “caching.” If the price of apples decreases, her “caching” will become __________ (louder/softer).