A curve that shows how the best available consumption bundle changes as income changes (holding the consumer's preferences and all other prices fixed) is called:
A. a price-consumption curve.
B. an individual demand curve.
C. an income-consumption curve.
D. a budget line.
C. an income-consumption curve.
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In the simple model of multiple deposit creation in which banks do not hold excess reserves, the increase in checkable deposits equals the product of the change in reserves and the
A) reciprocal of the excess reserve ratio. B) simple deposit expansion multiplier. C) reciprocal of the simple deposit multiplier. D) discount rate.
When plotted with the aggregate price level on the vertical axis and output on the horizontal axis, the aggregate demand curve
A. slopes upward. B. slopes downward. C. is vertical. D. is horizontal.
Would consumers benefit more from a tariff or a quota on imports?
What will be an ideal response?
A movie monopolist sells to students and adults. The demand function for students is QdS = 600 - 100P and the demand function for adults is QdA = 1,200 - 100P. The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. What price per ticket does the theater charge adults to maximize profits?
A. $4 B. $7 C. $6 D. $12