For a normal good, the income and substitution effects work in the ______ direction. Therefore, a change in price produces a ______ change in uncompensated demand than in compensated demand.
A. opposite; smaller
B. opposite; larger
C. same; smaller
D. same; larger
D. same; larger
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The Fed operating procedures employed between 1979 and 1982 resulted in ________ swings in the federal funds rate and ________ swings in the M1 growth rate
A) increased; increased B) increased; decreased C) decreased; decreased D) decreased; increased
Technical and organizational change
A) typically reduces prices by increasing the supply of the product, ceteris paribus. B) typically reduces prices by decreasing the demand for the product, ceteris paribus. C) typically increases prices by increasing the demand for the product, ceteris paribus. D) typically increases prices by decreasing the supply for the product, ceteris paribus.
As the baby boom starts to retire, you would expect to see the
A. labor for participation rate steadily rise. B. unemployment rate steadily rise. C. labor for participation rate steadily fall. D. unemployment rate steadily fall.
Ian views playing Wartcraft and drinking soda as perfect complements (one soda with one hour of playing Wartcraft). Currently, sodas are $1 each and Wartcraft costs $1 per hour. Ian has $12 of income
a. Compute Ian's Compensating Variation if the price of Wartcraft rises to $2. b. Compute Ian's Equivalent Variation if the price of Wartcraft rises to $2. c. Compute Ian's change in Consumer Surplus if the price of Wartcraft rises to $2.