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In: Economics

What do indifference curves do? a. They never cross more than once. b. They never cross....

What do indifference curves do?

a. They never cross more than once. b. They never cross.
c. They always cross. d. They are straight lines.

An indifference set can be best described as which of the following?

a. It is a set of consumption choices, each yielding the same utility. b. It is a set of demand curves.
c. It is a set of consumption choices, each yielding a different level of utility. d. It is a set of consumption choices dependent on the interaction between income and prices.

Julian only purchases coffee and Almond Joy bars. How will the income effect be shown if the price of an Almond Joy bar decreases?

a. A shift outward of the budget line using the new values for prices b. A shift outward of the budget line using the initial values for prices
c. A pivot inward of the position of the constraint to reflect the changed price d. A pivot outward of the position of the constraint to reflect the changed price

Burritos and beer are normal goods for Lucy. What would you expect to see if the price of beer decreases?

a. A movement along the initial indifference curve and Lucy buys less burritos. b. A movement along the initial indifference curve and Lucy buys more burritos.
c. A movement to a higher indifference curve and Lucy will buy more burritos. d. A movement to a lower indifference curve and Lucy will buy less burritos.

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Expert Solution

Rahul Sunny answered 7 months ago
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