When the price of a good changes but the price of the only other good bought by a consumer stays constant, his
a. budget line shifts.
b. indifference curves shift.
c. budget line changes slope.
d. indifference curves change slope.
c
You might also like to view...
Which of the following is probably the best example of a free good?
A) The air in your college classroom B) A can full of garbage put out for trash collectors C) Interstate highways D) Free concert tickets, which were given to you by a friend
The demand curve for bonds would be shifted to the left by
A) an increase in expected returns on other assets. B) a decrease in the information costs of bonds relative to other assets. C) a decrease in expected inflation. D) an increase in the liquidity of bonds relative to other assets.
A physician's office expenses increase by 10 percent, so the doctor decides to raise the price of office visits. Assuming the demand curve for office visits does not shift, what will happen to the total number of office visits and practice revenues?
a. Office visits and total revenue rise if demand is inelastic. b. Office visits and total revenue stay the same if demand is elastic. c. Office visits will fall and total revenue will rise if demand is inelastic. d. Office visits will rise and total revenue will fall if demand is elastic. e. Office visits and total revenue fall if demand is inelastic.
Subjective probabilities
A. are often inaccurate. B. are seldom used in management decisions. C are usually identical to objective probabilities. D. All of the above