If income decreases or the price of a complement rises
A) the demand curve for a normal good shifts leftward.
B) the demand curve for a normal good shifts rightward.
C) there is an upward movement along the demand curve for the good.
D) there is a downward movement along the demand curve for the good.
A
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The U.S. tax system
A) reduces inequality and shifts the Lorenz curve away from the line of equality. B) reduces inequality and shifts the Lorenz curve toward the line of equality. C) increases inequality and shifts the Lorenz curve toward the line of equality. D) increases inequality and shifts the Lorenz curve away from the line of equality.
Suppose a consumer's MRS is given by the formula MRSPT = T/P, where P stands for the number of pieces of pizza and T stands for the number of tacos. Starting at 12 tacos and 4 pizzas, the consumer must receive:
A. 3 tacos to compensate them for the loss of one piece of pizza. B. 3 pieces of pizza to compensate them for the loss of one taco. C. 1/3 taco to compensate them for the loss of one piece of pizza. D. 1/3 piece of pizza to compensate them for the loss of one taco.
Which combination of the following properties rules out indifference curves that intersect one another?
A. Completeness and diminishing marginal rate of substitution B. More-is-better and diminishing marginal rate of substitution C. Transitivity and more-is-better D. Completeness and more-is-better
Until recently, the elasticity of demand for cigarettes by adults was such that an increase in cigarette taxes to one dollar would
A. cut adult smoking by around 10%. B. cut adult smoking by half. C. actually increase adult smoking. D. have absolutely no effect of adult smoking.