Other things constant, a decrease in consumer income will
a. decrease the demand for large-screen television sets.
b. increase the demand for large-screen television sets.
c. cause a movement along the demand curve for large-screen television sets, but it will not shift the demand curve.
d. have no impact on the quantity demanded or the demand curve for large-screen television sets.
A
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The compensated demand curve
A. shows how the quantity demanded changes when the price changes. B. shows how income is compensated, so that the individual's commodity bundle stays on the same indifference curve. C. is sometimes referred to as the Hicksian demand curve. D. all of these answer options are correct.
On average, for the last 100 years or more, real GDP per capita in the United States has increased by
A) 0.5% per year. B) 1% per year. C) 2% per year. D) 4% per year.
Compared with a firm in a perfectly competitive market, the demand curve faced by a monopolistically competitive firm is
A) more elastic. B) more inelastic. C) perfectly elastic. D) perfectly inelastic.
Marginal utility is defined as the
a. extra satisfaction the consumer receives from an extra $1 of income b. total satisfaction a consumer receives consuming goods c. difference between total satisfaction and the extra satisfaction a consumer receives consuming a good d. extra satisfaction a person derives from consuming an additional unit of a good e. ratio of the utility a good provides to the price of that good, i.e., MU = U/P