Key to Success in Econ

1648 WordsAug 5, 20137 Pages
Red tama ung wlang highlight mali un.. haha 1 Suppose that a consumer’s income triples. However, at the same time, both the price of and the price of also triple. This consumer has experienced Response: no change in purchasing power. * Edit Question 2 Suppose the price of is PhP20 and the price of is PhP10 and that good is plotted on the horizontal axis. If the price of doubles and the price of triples, leaving the consumer’s income unchanged, the budget line Response: will shift out from the origin. * Edit Question 3 7Evaluate the truthfulness of the following statements. I. All points to the interior of the budget constraint are affordable. II. All points that lie on the budget constraint cost the same amount of money.…show more content…
* Edit Question 19 The tangency condition for the optimal choice for a consumer is given by Response: MUx/MUy = Py/Px * Edit Question 20 The marginal utility of the first cup of coffee that Bessie drinks in the morning is worth $2.00. The marginal utility of the 9th cup of coffee he drinks is positive while the marginal utility of the 10th cup of coffee he drinks in the morning is worth $0. This implies that at a price of $0, Tom would drink Response: zero cups of coffee per morning. * Edit Question 21 Sergy can buy either pizzas or submarine sandwiches. If the prices of pizzas and submarine sandwiches double and so does Sergy’s money income, we can deduce that Sergy’s budget constraint will Response: remain unchanged * Edit Question 22 Jane has PhP500 a week to spend on sandwich and drinks. The price of sandwich is PhP25 and the price of drinks is PhP10. What is the equation for Jane's budget constraint? Response: 25 × Clothing + 10 × Food = 500 * Edit Question 23 Suppose a consumer purchases two goods, and , and that the price of doubles, the consumer’s income doubles, and the price of remains unchanged. If good is plotted on the horizontal axis, the budget line Response: will shift out from the origin parallel to the original budget line. * Edit Question 24 At a consumer’s optimum combination, which of the following will not necessarily hold

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