If the graph shown represents Suzi's budget constraint, what can be said about hairbands?
A. They cost half as much as earrings.
B. Suzi likes hairbands more than earrings.
C. Suzi is willing to pay twice as much for hairbands.
D. They cost twice as much as earrings.
Answer: A
You might also like to view...
According to the law of demand, if
a. price increases, quantity demanded decreases b. people's income increases, quantity demanded increases c. price increases, quantity demanded increases d. people's income increases, quantity demanded decreases e. demand increases, supply will increase
Assuming that the substitution effect is large relative to the income effect, tax reform designed to increase saving
a. increases the interest rate and decreases spending on capital goods. b. increases the interest rate and increases spending on capital goods. c. decreases the interest rate and increases spending on capital goods. d. decreases the interest rate and decreases spending on capital goods.
Keynesians believe that the two basic cures for a recession are _____ and _____.
Fill in the blank(s) with the appropriate word(s).
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point D to Point B, the opportunity cost of hybrid cars, measured in terms of motorcycles,
A. initially increases, then decreases. B. increases. C. remains constant. D. decreases.