A consumer's utility-maximizing combination of goods is given by the bundle that corresponds to the point on
A) an indifference curve that is tangent to the budget constraint.
B) the budget constraint where it intersects one of the axes.
C) the indifference curve that intersects the horizontal axis.
D) the indifference curve that intersects the vertical axis.
A
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Suppose that there are only three consumers of a product. At a price of $6 per unit, the first consumer would buy 12 units of the product, the second consumer would buy 8 units, and the third consumer would buy 3 units of the product
If you drew a market demand curve for this product, the quantity demanded at a price of $6 would be A) 23 units. B) 20 units. C) 12 units. D) 11 units.
The short-run model makes use of the , which assumes that private consumption expenditure is sensitive to changes in current income.
a. Pareto-optimal condition b. consumer sovereignty model c. Keynesian consumption function d. consumption-smoothing model
Which of the following is NOT a function of the Federal Reserve System?
A. making loans to private firms B. supervising member banks C. holding deposits of member banks D. providing for check collection and clearing
A firm produces and sells two goods, A and B. Good A is known to have many close substitutes; good B makes up a significant portion of most families' budgets. A price increase for each good would most likely cause total revenues from good A to
A. decrease and total revenues from good B to increase. B. increase and total revenues from good B to increase. C. decrease and total revenues from good B to decrease. D. increase and total revenues from good B to decrease.