Bundle J contains 10 units of good X and 5 units of good Y. Bundle K contains 5 units of good X and 10 units of good Y. Bundle L contains 10 units of good X and 10 units of good Y. Assume that the consumer's preferences satisfy the four properties of indifference curves. The price of X is $1, the price of Y is $2, and the consumer has an income of $20 . Which bundle will the consumer choose?
a. bundle J
b. bundle K
c. bundle L
d. either bundle J or bundle K
a
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When the cost curves have U-shapes, at the point where marginal cost equals average total cost:
a. b and c. b. marginal cost is rising. c. average total cost is at its minimum. d. average variable cost is falling. e. the fixed cost has been fully depreciated.
The size of the national debt relative to GDP will not be reduced by
a. paying off some of the debt. b. lowering the federal deficit. c. having the GDP grow faster than the debt. d. having creditors forgive part of the debt.
When the government increases spending (holding taxes constant), the budget balance _____. This causes the interest rate in the market for loanable funds to _____ and investment to _____
Fill in the blank(s) with correct word
The demand curve illustrates the fact that consumers tend to purchase:
A. more of a good as its price falls. B. name-brand products more frequently than generic products. C. more of a good as it becomes more popular. D. more of a good as their incomes rise.