Exhibit 6A-5 Consumer Equilibrium
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Given the budget lines and indifference curves shown in Exhibit 6A-5, if the budget line shifts from AB to AC, then the:
A. price of good Y has increased.
B. price of good X has decreased.
C. price of good X has increased.
D. consumer's budget has decreased.
Answer: B
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Globalization and skill-biased technological change have contributed to:
A. increasing wage inequality. B. the long-term growth in real wages. C. the slowdown in productivity since 1973. D. high rates of employment in Western Europe.
Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. If the price of pecans is $3
A) economic surplus is maximized. B) the quantity supplied is economically efficient but the quantity demanded is economically inefficient. C) not enough consumers want to buy pecans. D) the quantity supplied is less than the economically efficient quantity.
The graph shown best represents:
A. a binding price ceiling.
B. a binding price floor.
C. a missing market.
D. a market for an inferior good.
Structural unemployment may be particularly severe for
A. younger workers B. college graduates. C. older workers. D. workers with “high tech” skills.