Demand price elasticity measures:
a. how much supply will change as price changes.
b. how consumers change their purchases in response to a change in income.
c. how consumers change their purchases in response to a change in the price of a substitute good.
d. how consumers change their purchases in response to a change in the price of a product.
e. the change in price brought about by a change in consumer demand.
d
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In the work-leisure model, suppose consumption and leisure are both normal goods. The income effect of a wage increase results in the worker choosing to
a. work less than before. b. work more than before. c. possibly work more or less than before. d. work more with a higher level of consumption.
When there is a low degree of complementarity between two products, then their indifference curves will:
A. be relatively straight. B. be perfectly straight lines. C. bend sharply. D. be positively sloped.
Which of the following determinants of the level of consumption is associated with Thorstein Veblen?
A. Credit availability B. The level of disposable income C. The stock of liquid assets in the hands of consumers D. Keeping up with the Joneses
In Figure 32.1, at the supported price-quantity combination where production is unlimited, and government buys the excess, the money government pays producers is 
A. 0P*CQ*. B. 0PfloorBQD. C. QDBEQS. D. 0HCQ*.