If a household's money income is doubled:Select one:O a. the budget constraint will shift in and parallel to the old oneO b. the budget constraint is not affectedOc. the budget constraint will swivel at the Y-interceptO d. the budget constraint will shift out parallel to the old one What would happen to the equilibrium price and quantity in the market for oak tables if the priceof maple tables rises, the price of oak wood rises, more buyers enter the market for oak tables,and the price of the glue used in the production of the new oak tables increased?Select one:O a. Equilibrium quantity would decrease, but the impact on equilibrium price would beambiguous.O b. Equilibrium price would decrease, but the impact on equilibrium quantity would beambiguous.O c. Equilibrium price would increase, but the impact on equilibrium quantity would beambiguous.O d. Equilibrium quantity would increase, but the impact on equilibrium price would beambiguous.e. Equilibrium price increases and equilibrium quantity decreases

Budget constraint shows possible combinations of goods and services that can be purchased given…

Answered: If a household's money income is…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 4SCQ: As a college student you work at a part-time job, but your parents also send you a monthly...

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Similar questions

As a college student you work at a part-time job, but your parents also send you a monthly allowance. Suppose one month your parents forgot to send the check. Show graphically how your budget constraint is affected. Assuming you only buy normal goods, what would happen to your purchases of goods?
Would you expect total utility to rise or fall with additional consumption of a good? Why?
Why does a change in income cause a parallel shift in the budget constraint?
If a household's money income is doubled: Select one: the budget constraint will swivel at the Y-intercept O a. b. the budget constraint will shift in and parallel to the old one O c. the budget constraint will shift out parallel to the old one O d. the budget constraint is not affected
If a household's money income is doubled: Select one: O a. the budget constraint is not affected O b. the budget constraint will shift in and parallel to the old one O . the budget constraint will swivel at the Y-intercept O d. the budget constraint will shift out parallel to the old one
Question 9 If we observe that a consumerâ s budget constraint has shifted inward, we can assume that the consumer will buy O more normal goods and fewer inferior goods O more normal goods and more inferior goods O fewer normal goods and more inferior goods fewer normal goods and fewer inferior goods O O
Assume Tom is on budget constraint AC and the price of a hamburger is $4.00. Tom's monthly income is . Tom's monthly budget constraint 40 A OD B 20 Number of hamburoers per month O 80 100 160 O 240 Number of hot dogs per month
Cola Income S60 GO Prota 51 Pizza Income $60 Prza $10 5. Refer to Scenario#1. If the price of cola doubles to $3 while thc income and the price of pizza are constant, then the a. budget constraint intersects the vertical axis at 20 colas C. slope of the budget constraint rises to -2 Hint: Wth b. budget constraint intersects the vertical axis at 30 colas d. budget constraint shifts inward in a parallel fashion
Quantity of Food (Y) Y2 Y1 YB Yc IC2 YA A! %3D %3D IC1 3D %3D Хв ХА ХС Quantity of Clothes (X) Refer to Figure#6. if the consumer was initially at point A in the figure, a movement from point B to point A as. a result of an increase of income due to the decrease of price of food represents the
If we observe that a consumerâ s budget constraint has shifted inward, we can assume that the consumer will buy O fewer normal goods and fewer inferior goods O more normal goods and more inferior goods O fewer normal goods and more inferior goods more normal goods and fewer inferior goods
If a household's income doubles, its budget constraint will Select one: a. pivot at the Y-intercept. o b. shift out parallel to the old one
The amount/limit of income a consumer has to spend on goods and services is known as O a budget constraint. wealth. O purchasing power. effective demand.

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