Exam 9: Possibilities,preferences,and Choices

Use the figure below to answer the following questions. Figure 9.3.4 Original equilibrium at A,new equilibrium at B -Refer to Figure 9.3.4.Which graphs show the case where good Y is a normal good?

Albert is consuming at a point where his budget line is not as steep as indifference curve.To reach consumer equilibrium,Albert

A preference map is

Larry consumes only beer (B)and chips (C).His real income in terms of beer is

Use the figure below to answer the following questions. Figure 9.3.3 -Consider an initial budget line labelled RS in Figure 9.3.3.The budget line becomes RT with

Real income in terms of a good is defined as

The substitution effect is the effect of

Zarina can afford to buy 3 tomatoes and no toothbrushes,or 2 toothbrushes and no tomatoes.The relative price of a toothbrush is

Which statement is true for an inferior good?

When Jim is at his best affordable point,the budget line

The number of pizza slices is plotted on the horizontal axis and number of hot dogs is plotted on the vertical axis.If the price of a hot dog rises the

At the best affordable point,what is the relationship between the indifference curve and the budget line?

Use the figure below to answer the following questions. Figure 9.3.3 -Consider an initial budget line labelled RS in Figure 9.3.3.If the budget line becomes RT,the income effect is illustrated by the move from point

Use the figure below to answer the following questions. Figure 9.3.1 -Consider the budget line and indifference curve in Figure 9.3.1.At the best affordable point,the marginal rate of substitution is

David has an income of $30 to buy movie tickets and bus tickets.The price of a movie ticket is $6 and the price of a bus ticket is $2.What is David's real income?

What is a distinguishing characteristic of goods that are perfect complements?

When speaking of the price of the good measured on the horizontal axis relative to the price of the good measured on the vertical axis,which statement is true?

The substitution effect is the effect of a change in ________ on ________.The income effect is the effect of a change in ________ on ________.

Leah consumes at a point on her budget line where her marginal rate of substitution is less than the magnitude of the slope of her budget line.As Leah moves towards her best affordable point,she will move to

Use the figure below to answer the following questions. Figure 9.3.3 -Consider an initial budget line labelled RT in Figure 9.3.3.If the budget line becomes RS,the income effect is illustrated by the move from point