Under the buy one, get one free regime, the
Topic: The Theory of Individual Behavior Quiz ( MCQ and Answer )
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
PXX + PYY = M is called
The budget set defines the combinations of good X and Y that
Some individuals choose to undertake risky prospects while others choose safer ones, because they have different
The possibility of the endless cyclical preference is eliminated by the property of
By the property of “more is better” and transitivity, indifference curves
Diminishing marginal rate of substitution implies that
Along the same indifference curve, MRS is
The marginal rate of substitution (MRS) determines the rate at which a consumer is willing to substitute between two goods in order to achieve
By the property of “more is better,” the consumer views the products under consideration as
A≻B means
What is the horizontal intercept of the budget line, given that M = $1,000, PX = $50, and PY = $40?