Jon's income-consumption curve is a straight line from the origin with a positive slope. Now suppose that Jon's preferences change such that his income-consumption curve remains a straight line but rotates 15 degrees clockwise
Jon's demand curve for the good on the horizontal axis A) will shift left.
B) will shift right.
C) will not change.
D) might do any of the above.
B
You might also like to view...
Claudia went to a department store to buy a few things for her new house. She found out that several items in the store were on discount and decided to make the most of the deals offered
However, as she started using the things that she bought, she realized that many of these items were defective. This happened due to: A) the presence of positive externalities. B) the presence of negative externalities. C) asymmetric information. D) moral hazard.
The signaling effect of foreign exchange intervention
A) never has any effect on exchange rates. B) can alter the market's view of exchange rates independent from the stance of monetary and fiscal policies. C) cannot cause an immediate exchange rate change when bonds denominated in different currencies are perfect substitutes. D) never leads to actual changes in monetary or fiscal policy. E) can alter the market's view of future monetary policies and cause an immediate exchange rate change.
If consumers spend more money on coffee than on sugar, then the demand for a pound of coffee is probably _________________ than is the demand for a pound sugar of because ________________.
A. less price elastic; coffee requires a larger portion of consumers' incomes. B. more price elastic; coffee requires a larger portion of consumers' incomes. C. less price elastic; people will take a longer time to adjust to the change in its price. D. more price elastic; people will take a longer time to adjust to the change in its price
An increase in the cost of chicken feed will reduce the supply of eggs
a. True b. False Indicate whether the statement is true or false