Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 Suppose that the price of a pair of socks falls from €5 to €2 The income effect is represented by the movement from point ?

Related Mcqs:

indifference curves for perfect substitutes are ?

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

If an increase in a consumer’s income causes the consumers to decrease her quantity demanded of a good, then the good is ?

A. a substitute good B. a normal good C. a complementary good D. an inferior good...

Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 Suppose that the price of a pair of socks falls from €5 to €2 The substitution effect is represented by the movement from point ?

A. Z to point X B. X to point X C. X to point Z D. Y to point X...

Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 A pair of socks is ?

A. an inferior effect B. a Geffen good C. a normal good D. none of these answers...

If consumption when young and when old are both normal goods, an increase in the interest rate ?

A. will always increase the quantity of saving B. will always decrease the quantity of saving C. will increase the quantity of saving if the substitution effect outweighs the income effect D. will increase the quantity of saving if the income effect outweighs the substitution effect...