Which of the following is not true regarding the outcome of a consumer’s optimization process ?

Related Mcqs:

If an increase in a consumer’s income causes the consumer to increase his quantity demand of a good, then the good is ?

A. a complementary good B. an inferior good C. a normal good D. a substitute 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 income effect is represented by the movement from point ?

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

The change in consumption that results when a price change moves the consumer along a given indifference curve is known as the ?

A. inferior effect B. normal effect C. substitution effect D. complementary effect E. income effect...

If leisure is a normal good, an increase in the wage ?

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

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...