Consider the income and substitution effects corresponding to an increase in the price of X. Which of the following are not possible?
a. The substitution effect on X is positive and the income effect is negative.
b. The substitution effect on X is positive and the income effect is negative.
c. The substitution effect on Y is negative and the income effect on X in negative.
d. The income effect on both goods is positive.
d. The income effect on both goods is positive.
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Which of the following statements is true?
A) Optimization in levels is based on behavioral analysis. B) Optimization in differences is based on marginal analysis. C) Optimization in differences is often faster than optimization in levels, as it considers all aspects of the feasible alternatives. D) Optimization in levels is often slower to implement than optimization in differences, as it considers only the aspects in which alternatives differ.
The Federal Reserve Act of 1913 required all ________ banks to become members of the Federal Reserve System, while ________ banks could choose to become members of the system
A) state; national B) state; municipal C) national; state D) national; municipal
Refer to the above figure. The supply curve is
A) elastic at high prices and inelastic at low prices. B) unitary for all prices. C) perfectly elastic. D) perfectly inelastic.
Historical note: Most of the failures (per year) of thrift institutions, such as savings and loan associations, occurred in
a. the late 1950s b. the early 1970s c. 1945 d. 1980–1982 e. 1988–1991