Queries on Consumer's Budget

 Essay about Questions upon Consumer’s Price range

п»їCh. 21

Determine 21-1

1 . Refer to Figure 21-1. In graph (a), what is the price tag on good Y relative to good X (i. e., Py/Px)? a.

one-half

b.

.25

c.

three or more

d.

some

ANS: N

2 . Consider Figure 21-1. Assume that someone faces both equally budget restrictions in chart (a) and graph (b) on two different events. If her income has always been constant, what has happened to rates? a.

The cost of X in graph (a) is greater than the price of By in chart (b). w.

The price of Y in graph (a) is definitely higher than the cost of Y in graph (b). c.

The prices of both equally X and Y happen to be lower in graph (a).

m.

None of the over is true.

ANS: A

three or more. Refer to Physique 21-1. Assume that a consumer confronts the budget limitation shown in graph (a) in January and the budget constraint proven in graph (b) in February. In case the consumer's cash flow has remained continuous, what offers happened to prices between January and February? a.

The price of Times has fallen, but there may not have been a change in the price of Y. m.

The price of Sumado a has gone down, but there may not have been a change inside the price of X. c.

The price of X has fallen, and the value of Con has risen.

d.

The price of Y provides fallen, as well as the price of X features risen.

ANS: C

5. A family on the road budgets $800 for dishes and motel accommodations. Presume the price of a meal is $40. In addition , presume the friends and family could afford a total of 8 night times in a hotel if they don't purchase any foods. How many meals is the family manage if they will gave up two nights inside the hotel? a.

1

n.

2

c.

5

g.

8

ANS: C

five. An increase in a consumer's cash flow

a.

increases the slope with the consumer's spending budget constraint.

w.

has no impact on the incline of the customer's budget restriction. c.

reduces the incline of the customer's budget restriction.

d.

does not have effect on the consumer's price range constraint.

ANS: B

6. The following diagram shows a single indifference contour representing the preferences for goods X and Con for one customer.

Figure 21-2

Refer to Number 21-2. Precisely what is the...