The substitution effect reflects how a consumer will react to a different
Multiple Choice Quizzes with Answer in English (Page: 405)
If you sell an inferior good, offering to sell gift certificates to those looking for a gift may result in
If a consumer is given a $10 gift certificate, good for items in store X and all items in store X are inferior goods, then consumer desires to consume
If a consumer is given a $10 gift certificate, good only for items in store X and all items in store X are normal goods, then the consumer desires to consume
Which is more preferred between a cash gift and an in-kind gift?
A cash gift causes the budget line to
An in-kind gift causes the budget line to
If income increases, then the
If the price of computers decreases, then the
Under the buy one, get one free regime, the
If the price of a good rises, then the equilibrium consumption of that good
If an increase in the price of good X leads to a decrease in the consumption of good Y, then goods X and Y are called
If an increase in the price of good X leads to an increase in the consumption of good Y, then goods X and Y are called
If the slope of the indifference curve is steeper than the slope of the budget line, and X is on the horizontal axis
At the equilibrium consumption bundle, which of the following holds?
The equilibrium consumption bundle is
Indifference curves further from the origin imply
If income decreases, then
If income increases, the budget line
The slope of the budget line represents