When isolating the substitution effect of a change in an individual's budget constraint, _____ is held constant
a. utility
b. budget
c. income
d. consumption
c
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When aggregate planned expenditure exceeds real GDP, there is
A) a planned increase in inventories. B) a planned decrease in inventories. C) an unplanned decrease in inventories. D) an unplanned increase in inventories. E) an unplanned decrease in the price level.
Economists regard people who work below their potential as being
a. underemployed b. unemployed c. as economically efficient as possible d. without human capital e. employed, but a contributor to long-run unemployment
We observed that the price of a good rises and the quantity purchased also rises. Everything else being equal, it is consistent that
a. the price of a substitute good fell. b. the price of a complement rose. c. income rose. d. costs of inputs increased.
How does a change in quantity supplied differ from a change in supply?
A. A change in the price affects quantity supplied, not supply. B. A change in quantity supplied shifts the supply curve; a change in supply is a movement along the curve. C. A change in one of the ceteris paribus conditions affects quantity supplied, not supply. D. There is no difference.