How does a decrease in the price of good X affect the market rate of substitution between goods X and Y?
Multiple Choice Quizzes with Answer in English (Page: 407)
What are the advantages to a firm of selling gift certificates?
Which of the following is most likely not to be an example of a normal good?
If an increase in income causes a decrease in the consumption of good Y we know that good Y is:
If you are in the business of selling chicken and the price of selling chicken and the price of beef both were to drop dramatically, what should you do with your inventory level of chicken?
Which of the following pairs of goods is probably not an example of substitutes?
After a price decrease for good X, the new consumer equilibrium level of good X will be:
At the point of consumer equilibrium the slope of the budget line is equal to the:
If the price of good X increases, what will happen to the budget line?
If a consumer’s income decreases, what will happen to the budget line?
Given that income is $500 and PX = $20 and PY = $5, what is the market rate of substitution between goods X and Y?
Given that income is $200 and the price of good Y is $40. What is the vertical intercept of the budget line?
The upper boundary of the budget set is the:
What is the maximum amount of good Y that can be purchased if X and Y are the only two goods available for purchase and PX = $5, PY = $10, X = 20, and M = 500?
The combinations of goods X and Y that are affordable to the consumer are defined by the:
The idea that a consumer is limited to selecting a bundle of goods that is affordable is captured by the:
The property that rules out indifference curves that cross is:
The property that implies that indifference curves are convex to the origin is:
An increase in the price of good X will have what effect on the budget line on a normal X-Y graph?
The absolute value of the slope of the indifference curve is called the: