Holding all other prices and money income constant, if the price of food rises, then the consumer will adjust her expenditures and
A) reach an optimum on a higher indifference curve.
B) reach an optimum on a lower indifference curve.
C) reach an optimum on the same indifference curve.
D) her level of satisfaction may go up or down.
Answer: B
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Suppose improvements in technology cause the supply of natural gas to increase and at the same time the demand for natural gas increases. What are we sure of?
A) Both equilibrium price and quantity increase. B) Equilibrium price increases. C) Equilibrium price decreases. D) Equilibrium quantity increases. E) Equilibrium quantity decreases.
The U.K Bribery Act is ________ harsh than the U.S. Foreign Corrupt Practice Act (FCPA) as all facilitating payments ________ illegal.
A) more; are not B) more; are C) less; are D) less; are not
The market supply curve for a product:
A. is the supply of an individual consumer. B. will lie to the right of all of the individual supply curves for a product. C. graphically is the vertical sum of the individual supply curves. D. will lie above all of the individual supply curves for a product.
During unanticipated inflation,
A. savers lose. B. borrowers gain. C. lenders lose. D. All of the choices are correct.