Multiple Choice
Use the information below to answer the following questions.
Fact 9.3.1
Marc has an income of $20 and spends it on two goods,root beer (measured on the vertical axis) and chips (measured on the horizontal axis) .The price of root beer is $1 a can.The price of chips is $0.50 a bag.Initially,Marc chooses to consume 10 cans of root beer and 20 bags of chips.Then the price of root beer rises to $1.50 per can and the price of chips falls to $0.25 a bag.
-Refer to Fact 9.3.1.When the price of a bag of chips falls,Marc
A) will consume more beer,more chips,and be better off.
B) will consume less beer,more chips,and be better off.
C) will consume less beer,more chips,and be worse off.
D) will consume less beer,less chips,and be worse off.
E) will consume more beer,less chips,and be better off.
Correct Answer:

Verified
Correct Answer:
Verified
Q53: Use the figure below to answer the
Q54: When Jim is at his best affordable
Q55: Karen consumes chocolate and candles.When Karen is
Q56: Use the figure below to answer the
Q57: Suppose all prices double and income also
Q59: Larry consumes only beer (B)and chips (C).If
Q60: Use the figure below to answer the
Q61: What is the relationship between goods and
Q62: Junkfood Jill spends all of her income
Q63: If income increases,the budget line<br>A)becomes steeper.<br>B)becomes flatter.<br>C)shifts