Refer to the above graphs. Which pairs of budget constraints represent only a decrease in the price of X, but no change in income and no change in the price of Y?
A. Graph A
B. Graph B
C. Graph C
D. Graph D
Answer: B
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When we compare shares of income earned by U.S. households, which of the following statements about the distribution of income is true?
A) Shares of income decrease as we move from the lowest quintile to the highest quintile. B) Shares of income increase as we move from the lowest quintile to the highest quintile. C) Shares of income remain fairly constant as we move from the lowest quintile to the highest quintile. D) Shares of income decrease as we move from the lowest quintile to middle quintile, and then decrease from the middle quintile to the highest quintile.
A second-price auction
a. is also called a Vickrey auction b. is conducted by bidders submitting a single sealed bid c. is where the highest bidder wins and pays the amount of the next highest bid d. all of the above
The equilibrium price level and the equilibrium level of real GDP are jointly determined by the intersection of the economy’s aggregate supply and aggregate demand schedules.
Answer the following statement true (T) or false (F)
The tendency of changes in asset prices to affect spending on consumption goods is called the ________ effect.
A. multiplier B. wealth C. income D. substitution