Multiple Choice
The price of a good increases relative to other goods.Which one of the following statements must be true? The resulting
A) income effect is negative.
B) income effect is positive.
C) substitution effect is negative.
D) substitution effect is positive.
E) income effect is zero.
Correct Answer:
Verified
Correct Answer:
Verified
Q12: Albert is consuming at a point where
Q13: Larry consumes only beer (B)and chips (C).His
Q14: Use the figure below to answer the
Q15: A constant marginal rate of substitution between
Q16: The magnitude of the slope of an
Q18: Sara's income is $12 a week.The price
Q19: Use the figure below to answer the
Q20: Use the figure below to answer the
Q21: If income decreases,the budget line<br>A)becomes steeper.<br>B)becomes flatter.<br>C)shifts
Q22: Larry consumes only beer (B)and chips (C).The