d. Paul's 9. Paul considers goods 1 and 2 as perfect complements. Suppose prices and income change. with the price of good 1 increasing proportionately more than the price of good 2. After changing his optimal choice of consumption, he obtains the same level of utility as before. a. Paul's consumption of both commodities does not change; b. Paul consumes more of good 1 than before, and less of good 2 than before; c. Paul consumes more of good 2 than before, and less of good 1 than before; d. Paul consumes more of good 1 than before.
d. Paul's 9. Paul considers goods 1 and 2 as perfect complements. Suppose prices and income change. with the price of good 1 increasing proportionately more than the price of good 2. After changing his optimal choice of consumption, he obtains the same level of utility as before. a. Paul's consumption of both commodities does not change; b. Paul consumes more of good 1 than before, and less of good 2 than before; c. Paul consumes more of good 2 than before, and less of good 1 than before; d. Paul consumes more of good 1 than before.
Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter21: The Theory Of Consumer Choice
Section: Chapter Questions
Problem 1PA
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i need 9 mcqs
Transcribed Image Text:a.
b. Positively sloped3;
c. U-shaped.
over two goods x
d. Flat
8. Consider two consumers, Paul and Sara, having the same preferences
alevel Ismdao
x is normal for both consumers.
a. Paul consumes more of good x than Sara;
b. Sara consumes more of good x than Paul;
c. Paul's consumption of good x decreases when the price of good y increases
d. Paul's consumption of good y decreases when the price of good y increases
9. Paul considers goods 1 and 2 as perfect complements. Suppose prices and income change,
with the price of good 1 increasing proportionately more than the price of good 2. After
changing his optimal choice of consumption, he obtains the same level of utility as before.
a. Paul's consumption of both commodities does not change;
b. Paul consumes more of good 1 than before, and less of good 2 than before;
c. Paul consumes more of good 2 than before, and less of good 1 than before;
d. Paul consumes more of good 1 than before.
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