Suppose the price of A is $20 and the price of B is $10 and that good A is plotted on the horizontal axis. If the price of A doubles and the price of B triples, leaving theconsumer’s income unchanged, the budget line a)  will become steeper. b)  will become flatter. c)  will shift in toward the origin. d)  will shift out from the origin.

Q: Which of the following statements is true? Select one or more options: -If two different…

A: The following statements are true -   If two different individuals have exactly the same budget…

Q: Comparing the slope of the budget line (Opportunity Cost of Good Y) with the slope of the…

A: opportunity cost means the worth of the following most elevated esteemed elective utilization of…

Q: Which of the following statements is true? Select one or more options: a-If two different…

A: a. The equilibrium condition for getting the optimal choice is always the equality between the MRS…

Q: The blue budget line is for an income of $1000, Px=$5 and Py=$10. At point A, the person is evenly…

A:

Q: Diminishing marginal utility refers to the fact that demand declines as income falls. additional…

A: The total utility is the total satisfaction received by the consumer by consuming goods and…

Q: When a consumer earns a higher income, it rotates the budget line outward around the point where it…

A: A BL (budget line) demonstrates the two commodities whose combination a consumer can render to buy…

Q: For an individual the Marginal Rate of Substitution for good X and Y is constant and equal to 1 for…

A: The budget constraint of the individual shows the different combinations of two goods an individual…

Q: The rate of market substitution is:             The consumer’s marginal utility             The…

A: The rate which depicts amount of one good being substituted for another good and is being used for…

Q: Good Y H A B E F C BC2 G BC1 D Good X

A: Indifference curves or IC curves represents combinations of two goods represented on the either axis…

Q: What is utility? the satisfaction a person gets from the consumption of a good a measure of…

A: please find the answer below

Q: The law of diminishing marginal utility is consistent with the fact that people trade. Do you agree…

A: In economics, various laws and theories are developed to understand the market behavior in different…

Q: Hector has a budget for bottled water and soda pop. If the price of soda pop decreases, Hector will…

A: Indifference curve shows the combination of two goods which give a consumer same level of…

Q: Which of the following statements is correct? Indifference curves cannot intersect due to the…

A: Indifference curve is a locus of different combinations of two goods that are consumed by consumers…

Q: The consumer's initial budget line is I with income equal to S3000. The budget line then shifts from…

A: A graphical representation in which all possible combinations of two products are purchased with…

Q: The consumer is in equilibrium at a point where the budget line

A: Consumers are balanced at the intersection of the budget lines.

Q: Marginal utility is defined as the increment to total utility that results from the consumption of…

A: Meaning of Utility Function: The term utility function refers to the total utility for a consumer…

Q: A halving of the prices good A and good B has the same effect on the budget line as doubling the…

A: The graph that depicts all of the combinations that are possible to be brought with the given income…

Q: BC1 BC2 D Good X If the budget constraint shifts from BC2 to BC1, then A the consumer decreased the…

A: A budget constraint is a graphical representation of all conceivable combinations of two commodities…

Q: utility is the additional satisfaction gained by consuming of a good.

A: In Economics, Utility is defined as the usefulness or enjoyment of a consumer which he/she gets from…

Q: he rate of market substitution is:             The consumer’s marginal utility             The…

A: The rate which depicts the amount of one good being substituted for another good and is being used…

Q: Maria spends all of her income of $2,000 on food (F) and clothing (C). The prices per unit are: PF =…

A: Given:Maria's income is $2000,price of food (PF) is $5 and price of clothing (PC) is $20 Maria can…

Q: Hector has a budget for bottled water and soda pop. If the price of soda pop decreases, Hector will…

A: Hector is consuming two goods, i.e., bottled water and soda pop.  He has a constant budget and fixed…

Q: The theory of consumer choice examines the tradeoffs inherent in decisions made by consumers. For…

A:

Q: MRS is defined as: (a) Amount of good Y given up in exchange for good X such that total utility is…

A: # MRS is referred to be as Marginal rate of substitution.  MRS helps the consumer trade off some of…

Q: At the point of tangency of indifference curve and the budget line: Select one: a. The slope of the…

A: Indifference Curve shows the combination of two goods that give a equal satisfaction. on the other…

Q: The slope of which of the following curves is a negative number? A curve that depicts total utility…

A: The answer is - 2. A curve that depicts marginal utility of an individual.

Q: Suppose the price of A is $2 and the price of B is $3 and that good A is plotted on the horizontal…

A: As given price of good A is $2 and price of good B is $3. After that price of good A double that…

Q: Comparing the slope of the budget line (Opportunity Cost or relative price of Good Y) with the slope…

A: In economics, the marginal rate of substitution (MRS) is the quantity of one good that a customer is…

Q: If the price of good x1 and p1 = 2, the price of good x2 is p2 = 3, Kramer's available income is m…

A: We have given that  price of good x1 (p1) =2 Price of good x2  (p2)=3 Kramer's income (m)=16 Utility…

Q: If marginal utility is less than the price, the consumer will

A: Marginal utility: It is the satisfaction that a consumer gets from having one more unit of a good or…

Q: The marginal rate of transformation of y for x represents *         a)the rate at which the consumer…

A: The marginal rate of substitution refers to the rate at which a consumer gives up a good to get an…

Q: If good X plotted on the x-axis, and good Y plotted on the y-axis, an increase in the price of good…

A: Budget constraint shows the amount of the two goods that can be purchased given their prices and…

Q: he utility theory that describes how much of one market basket is preferred to another is called the…

A: There are two types of approaches in the concept of utility that is qualitative and quantitative.…

Q: Advertisement is one of the factors that influence customers to increase demand for a specific good.

A:

Q: A consumer is choosing between magazines and books. Several indifference curves are shown on the…

A: Given Income= $500 Price of books = $10 If consumer spend all his income on books , then he can…

Q: Assume the price of product Y (the quantity of which is on the vertical axis) is $10 and the price…

A: Given price of Product Y = 10 $ Price of Product X = 5 $ Income = 30 $ Therefore Qty of product Y =…

Q: Draw an optimal consumption bundle which represents that consumers are willing to pay a greater…

A: The optimal consumption bundle is a collection of items that fit within a budget and provides the…

Q: The marginal utility of a good or service declines as one more unit is consumed because: (a)…

A: The law of diminishing marginal / minimal utility indicates that as an individual gets even more a…

Q: An increase in the price of good y would Select one: a. Shift the budget line b. budget line pivots…

A: Answer: b. budget line pivots from x-intercept to the left An indifference curve shows the…

Q: Supreme Court Justice Bret Kavanaugh likes beer. The first beer he drinks yields 20 utils; the…

A: Answer: option a (all of these) Explanation: Quantity of beer Marginal utility Total utility 1…

Q: The shape of a person's indifference curves between two goods depends on A) the marginal rate of…

A: Government has certain tax revenue with them through which they have to carry expenditure on…

Q: True or false.  A change in prices or income can alter preferences and thus the indifference curves…

A: In the mentioned question, we are asked whether there is any shift seen in the indifference curve…

Q: As a person receives more of a good, the _______________ from each additional unit of the good…

A: Wants satisfying power of commodity called utility , here we choose the correct option and explain…

Q: Indifference curves represent: a) Ability to pay b) Total Utility c) Marginal Utility d) None of the…

A: Total utility refers to the total satisfaction that a consumer gets from consuming a good. Marginal…

Q: Which of the following statements about a budget line is correct? The opportunity cost of the good…

A: Budget line is the curve represents the two possible combinations of goods which can be bought with…

Q: Make a curve of the budget line curve with the Indifference curve, make a separation between the…

A: In economics, and in particular in consumer choice theory, the substitution effect is one aspect of…

Q: Indifference curves are convex to the origin because of: A) the assumption that more is preferred to…

A: Indifference curve shows combinations of two goods that give same level of utility to consumers.

Q: The substitution effect. Multiple Choice is generally so weak that its effect cannot be predicted.…

A: The price effect includes income effect and substitution effect. It is the summation of two effects…