If income decreases, then:
A. the horizontal intercept of the budget line shifts upward.
B. the budget line remains the same.
C. the slope of the budget line becomes steeper.
D. the vertical intercept of the budget line shifts downward.
Answer: D
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Answer the following statement true (T) or false (F)
When the free rider problem is present in a market:
A. what people pay often does not reflect the real value they put on a good. B. the good will likely be over consumed. C. the good is rival in consumption. D. the good is easily excludable.
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a. True b. False Indicate whether the statement is true or false
Exhibit 6A-6 Consumer equilibrium
?
As shown in Exhibit 6A-6, the marginal rate of substitution (MRS) at point X is ____ the marginal rate of substitution at point Y.
A. less than B. greater than C. equal to D. twice