The change in the budget line from B3 to B1 was caused by: (a) increase in the consumer's budget (b) same percent fall in the prices of both goods (c) decrease in the price of Y (d) decrease in the price of X (e) increase in the price of Y 400350300Y250 B4200B1150B3100500B20 1 2 3 4 5 6 7 8

The correct answer is: (c) decrease in the price of Y. The shift in the budget line from B3 to B1…

Answered: 400 350 300 Y 250 B4 200 B1 150 B3 100…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Total utility may be determined by Multiple Choice multiplying the marginal utility of the last unit consumed by the number of units consumed. summing the marginal utilities of each unit consumed. multiplying the marginal utility of the last unit consumed by product price. multiplying the marginal utility of the first unit consumed by the number of units consumed. X
marginal utility is a measure of the benefit (or value, or enjoyment) a person obtains by a) Consuming a single additional unit of a product. b)Selling a single additional unit of a product (and spending the resulting cash). c) Borrowing the dollar value of a single additional unit of a product (and spending it on something nice). d)Converting a single additional unit of product to an equivalent number of units.
The Law of Demand has implications for consumer welfare because:Response option group (a) As the price of the product rises (falls), the supply shifts up (down) (b) As the price of the product rises (falls) the consumer experiences a reduction (increase) in his real income by being able to purchase less (more) of the product (c) Producers are willing to produce more at better prices (d) Consumers are willing to buy more of the product at any cost
) x's income Is 500, the price of food is 2 per unit, income is $500, the price of food (F) is $2 per unit, and the price of shelter (S) is $100. Which of the following represents their budget constraint? A) 500 = 100F + 2S B) 500 = 2F + 100S C) S = 500 - 2F D) All of the above.
Suppose U = 2X + Y, I = 20, Px = 2, and Py = 2. (a) Find Marshallian demand for X and Y . (b) What is Marshallian demand for X and Y if the price of X increases to 5? How much of the change in demand for X is the income effect and how much is the substitution effect? (c) How much is compensating variation for the price change described in part (b)? (d) How much is equivalent variation for the price change described in part (b)? ( Please solve all the subparts ASAP I will give you thumbs up . )
It is proven mathematically that indifference curves are convex due to:(a) rising marginal rates of substitution.(b) the inverse association between the quantity demanded and the price.(c) costs decreasing in value.(d) the marginal rates of substitution being negative.
Question 25 When the expected future price of a good rises, a) consumers decrease their willingness to buy, or "draw down." b)consumers increase their willingness to buy, or "stock up." c) sellers increase their willingness to sell. d) sellers' willingness to sell remains unchanged.
Higher Indifference curve means: (a) Consumer has got increment in income (b) Higher utility (c) Prices of product have reduced
Suppose an individual has the following utility function: U(X,Y)= min{X, 2Y}, and they choose marshallian demands gx,gy. Suppose you have an increase in px. Which of the following is true about the change in demand for good X, gx? (a) No substitution effect, because they only consume one of the goods. (b) No substitution effect, because they always consume the goods in fixed proportion. (c) No income effect, because they only consume one of the goods. (d) No income effect, because they always consume the goods in fixed proportion. Which of the following production functions exhibits constant returns to scale? (a) f(k,l) = 0.310.7 (b) f(k, l) = kl (c) f(k, 1) = ln(k)+ln(1) (d) f(k, l) In(k) + In(1) =
The income of a consumer is $40, the price of A is $2, and the price of B is $6. If the quantity of A is measured vertically, then the slope of the budget line is Multiple Choice −3.0. −0.5. −0.33. −2.5.

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		(a) increase in the consumer's budget
		(b) same percent fall in the prices of both goods
		(c) decrease in the price of Y
		(d) decrease in the price of X
		(e) increase in the price of Y

400 350 300 Y 250 B4 200 B1 150 B3 100 50 0 B2 0 1 2 3 4 5 6 7 8