Question 1

Given the consumption function C = a + bY, where 'a', the intercept, represents_____

Accepted Answer

A) Income 
B) autonomous consumption 
C) Demand 
D) Saving 
A) Income 
B) autonomous consumption 
C) Demand 
D) Saving

Question 2

For complementary goods the cross elasticity of demand will be ______

Accepted Answer

A) negative 
B) zero 
C) positive 
D) any of these 
A) negative 
B) zero 
C) positive 
D) any of these

Question 3

______ function expresses the relationship between price of the good and quantity of the good demanded.

Accepted Answer

A) Supply 
B) Consumption 
C) Demand 
D) Income 
A) Supply 
B) Consumption 
C) Demand 
D) Income

Given the consumption function C = a + bY, where 'a', the intercept, represents_____

For complementary goods the cross elasticity of demand will be ______