Refer to Exhibit 4. Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 If the price of a belt is €10 and the price of a pair of socks is €5, the consumer will choose to buy the commodity bundle represented b point ?

Related Mcqs:

indifference curves for perfect substitutes are ?

A. right angles B. bowed outward C. straight lines D. nonexistent E. bowed inward...

uppose a consumer must choose between the consumption of sandwiches and pizza. If we measure the quantity of pizza on the horizontal axis and the quantity of sandwiches on the vertical axis and if the price of a pizza is Rs10 and the price of a sandwich is Rs5, then the slope of the budget constraint is ?

A. 2 B. 10 C. 1/2 D. 5...

Which of the following statements is not true with regard to the standard properties of indifference curves ?

A. Indifference curves are downward sloping B. indifference curves are bowed outward C. Indifference curves do not cross each other D. Higher indifference curve is preferred to lower ones...

The consumer’s optimal purchase of any two goods is the point where ?

A. the budget constraint crosses the indifference curve B. the two highest indifference curves cross C. the consumer reaches the highest indifference curve subject to remaining on the budget constraint D. the consumer has reached the highest indifference curve...

Suppose we measure the quantity of good X on the horizontal axis and the quantity of good Y on the vertical axis If indifference curves are bowed inward, as we move from having an abundance of good X to having an abundance of good Y, the marginal rate of substitution of good Y for good X (the slope of the indifference curve) ?

A. rises B. stays the same C. could rise or fall depending on the relative prices of the two goods. D. falls...