Refer to Goods X and Y. If the indifference curves are horizontal, then we can conclude that
Assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions.
a. X does not affect the individual’s utility.
b. Y does not affect the individual’s utility.
c. both X and Y affect the individual’s utility.
d. neither good affects the individual’s utility.
a. X does not affect the individual’s utility.
You might also like to view...
Since the formation of NAFTA, our trade deficit with Mexico has gone ___________ and our trade deficit with Canada has gone ____________.
A. up; up B. down; down C. up; down D. down; up
Which of the following Fed policy actions left the date for completion open, based on achieving particular employment objectives?
A. QE2. B. QE3. C. Maturity Extension Program. D. Operation Twist.
If a person takes $100 from his/her piggy bank at home and puts it in his/her savings account, then M1 will ________ and M2 will ________
A) increase; increase B) not change; increase C) decrease; increase D) decrease; not change E) increase; decrease
If the marginal propensity to consume is 0.7 and if output increases by $200, then consumption spending
A) increases by $70. B) decreases by $70. C) increases by $140. D) decreases by $140.