Multiple Choice
When a consumer's optimal consumption choice is a corner equilibrium it implies:
A) the consumer has highly diversified preferences.
B) the goods are economic "neuters".
C) consumers spend all of their income on one good.
D) the goods are pure complements.
Correct Answer:
Verified
Correct Answer:
Verified
Q67: An indifference map shows the optimal consumption
Q68: Candies are on the vertical axis and
Q69: Suppose food is on the horizontal axis
Q70: In deriving an income-consumption curve,it is assumed
Q71: If the vertical axis measures yams which
Q73: How do inferior goods differ from economic
Q74: Convexity of indifference curves implies that _.<br>A)the
Q75: The diminishing marginal rate of substitution along
Q76: When the income-consumption curve is backward-bending to
Q77: Consider a graph with Yvonne's income on