Multiple Choice
Hold the prices of goods, as well as Amy's preferences, constant. If Amy's income increases, then
A) both her indifference curves and budget constraint change.
B) her indifference curves change, but her budget constraint does not change.
C) her budget constraint changes, but her indifference curves do not change.
D) neither her indifference curves nor her budget constraint change.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: The direction of the substitution effect is
Q128: Indifference curves illustrate<br>A)a firm's profits.<br>B)a consumer's budget.<br>C)a
Q138: Assume that a person consumes two goods,
Q155: At a consumer's optimal choice, the consumer
Q340: A rational consumer maximizes her<br>A)preferences.<br>B)marginal rate of
Q342: When the price of an inferior good
Q344: Figure 21-18 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1273/.jpg" alt="Figure 21-18
Q345: A consumer chooses an optimal consumption point
Q346: Figure 21-6 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1273/.jpg" alt="Figure 21-6
Q347: Which of the following statements is not