Multiple Choice
In the fundamental theorem of consumption and to prove the law of demand, Samualson uses
A) compensating variation in income
B) the cost difference
C) the over compensation effect
D) substituting variation in price
Correct Answer:

Verified
Correct Answer:
Verified
Q14: Indifference curves are<br>A)always parallel<br>B)may be parallel<br>C)may not
Q15: Which of the following statement is FALSE
Q16: If negative income effect is less than
Q17: The slope of a budget line throughout
Q18: The slope of a budget line is<br>A)the
Q19: According to Hicks substitution effect is<br>A)the movement
Q21: At the point of tangency the slope
Q22: The substitution effect for a commodity is<br>A)is
Q23: Revealed preference theory assumes<br>A)weak ordering<br>B)strong ordering<br>C)constant ordering<br>D)multiple
Q24: If both the products X & Y