Suppose you have drawn a consumer's budget line for food and clothing with food on the...
Suppose you have drawn a consumer's budget line for food and clothing with food on the horizontal axis and clothing on the vertical axis. If the price of food increases,
A.
the budget line shifts outward in a parallel fashion.
B.
the budget line becomes flatter.
C.
the budget line becomes steeper.
D.
the budget line shifts inward in a parallel fashion.
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Suppose you have drawn a consumer's budget line for food and
clothing with food on the...
5. Suppose you have drawn a consumer's budget line for food and clothing, with food on...
5. Suppose you have drawn a consumer's budget line for food and clothing, with food on the x- axis. Which of the following events would make the budget line steeper? a) Income increases. b) Price of food increases. c) Price of clothing increases. d) None of the above. 6. A downward sloping price-consumption curve indicates that a) The two goods are complements. b) The two goods are substitutes. c) The two goods are independent of each other. d) The two...
Question 14 1 pts Suppose there are two goods: food (horizontal axis) and shelter (vertical axis)....
Question 14 1 pts Suppose there are two goods: food (horizontal axis) and shelter (vertical axis). If income doubles, the price of food doubles, and the price of shelter doubles, then the budget line will be unchanged. budget line will become steeper. budget line will become flatter, budget line will shift outward in a parallel fashion.
If the consumer's income increases, a. The budget line will swing outward (slope will become shallower)....
If the consumer's income increases, a. The budget line will swing outward (slope will become shallower). b. The budget line will swing inward (slope will become steeper). c. The budget line will shift out parallel to the old budget line (the slope will be unchanged). d. The budget line will shift inward parallel to the old budget line (the slope will be unchanged). e. The indifference curves will change shape.
Just the answer please, no need to show the work. Suppose there are two goods, the...
Just the answer please, no need to show the work. Suppose there are two goods, the prices of both goods are positive and a consumer's income is also positive. If the consumer's income doubles and the price of both goods triple, the consumer's budget line gets steeper and shifts inward. the slope of the consumer's budget line does not change but the budget line shifts outward away from the origin. the slope of the consumer's budget line does not change...
QUESTION 2 A firm uses two inputs: capital and labor. The price of capital increases and the price of labor stays t...
QUESTION 2 A firm uses two inputs: capital and labor. The price of capital increases and the price of labor stays the same. What happens to the slope of the isocost line if capital is on the horizontal axis and labor on the vertical axis? The isocost line does not change The isocost line becomes steeper The isocost line shifts outward The isocost line becomes flatter
2 poin QUESTION 2 Afirm uses two inputs: capital and labor. The price of capital increases and the price of labor s...
2 poin QUESTION 2 Afirm uses two inputs: capital and labor. The price of capital increases and the price of labor stays the same. What happens to the slope of the isocost line if capital is on the horizontal axis and labor on the vertical axis? The isocost line does not change The Isocost line becomes steeper The isocost line shifts outward The isocost line becomes flatter QUESTION 3
3. (3 Points) Intuitively describe what the slope of the budget line tells us about the...
3. (3 Points) Intuitively describe what the slope of the budget line tells us about the consumer's ability to trade goods X and Y. 4. (6 Points) For each description of a change in the budget line given below, state which of the following increases or decreases for the budget constraint variables would cause it: † Px + PxPy. Pytw, and I W. (a) The budget line rotates inward around its horizontal intercept (meaning that it's horizontal intercept does NOT...
Suppose Cole buys food (X) and clothing (Y) with his income of $500 per month. The prices that Co...
Suppose Cole buys food (X) and clothing (Y) with his income of $500 per month. The prices that Cole faces in month one are $2 per unit of food and $4 per unit of clothing. His utility-maximizing choice is 100 food units and 75 clothing units. His preferences are convex. Now assume that in month two, Cole's income increases by 11% to $555, the price of food increases by 5% to $2.10, and the price of clothing increases by 15%...
You have $150 to spend on food and clothing. The price of food and clothing are...
You have $150 to spend on food and clothing. The price of food and clothing are $5 and $15 respectively. (a) Write down the equation for the budget line, and graph it. (b) Suppose that the government subsidizes clothing such that each unit of clothing is half-price, up to the rst 6 units of clothing. More than 6 units of clothing purchase is still priced at $15 per unit. Write down the equation for the budget line under this subsidy,...
Given the graph below, if the consumer’s income decreases, a. The budget line will swing outward...
Given the graph below, if the consumer’s income decreases,
a. The budget line will swing outward (slope will become
shallower).
b. The budget line will swing inward (slope will become
steeper).
c. The budget line will shift out parallel to the old budget
line (the slope will be unchanged).
d. The budget line will shift inward parallel to the old budget
line (the slope will be unchanged).
e. The indifference curves will change shape.
Drs services Nurses services
5. Suppose you have drawn a consumer's budget line for food and clothing, with food on the x- axis. Which of the following events would make the budget line steeper? a) Income increases. b) Price of food increases. c) Price of clothing increases. d) None of the above. 6. A downward sloping price-consumption curve indicates that a) The two goods are complements. b) The two goods are substitutes. c) The two goods are independent of each other. d) The two...
Question 14 1 pts Suppose there are two goods: food (horizontal axis) and shelter (vertical axis). If income doubles, the price of food doubles, and the price of shelter doubles, then the budget line will be unchanged. budget line will become steeper. budget line will become flatter, budget line will shift outward in a parallel fashion.
QUESTION 2 A firm uses two inputs: capital and labor. The price of capital increases and the price of labor stays the same. What happens to the slope of the isocost line if capital is on the horizontal axis and labor on the vertical axis? The isocost line does not change The isocost line becomes steeper The isocost line shifts outward The isocost line becomes flatter
2 poin QUESTION 2 Afirm uses two inputs: capital and labor. The price of capital increases and the price of labor stays the same. What happens to the slope of the isocost line if capital is on the horizontal axis and labor on the vertical axis? The isocost line does not change The Isocost line becomes steeper The isocost line shifts outward The isocost line becomes flatter QUESTION 3
3. (3 Points) Intuitively describe what the slope of the budget line tells us about the consumer's ability to trade goods X and Y. 4. (6 Points) For each description of a change in the budget line given below, state which of the following increases or decreases for the budget constraint variables would cause it: † Px + PxPy. Pytw, and I W. (a) The budget line rotates inward around its horizontal intercept (meaning that it's horizontal intercept does NOT...
Given the graph below, if the consumer’s income decreases,
a. The budget line will swing outward (slope will become
shallower).
b. The budget line will swing inward (slope will become
steeper).
c. The budget line will shift out parallel to the old budget
line (the slope will be unchanged).
d. The budget line will shift inward parallel to the old budget
line (the slope will be unchanged).
e. The indifference curves will change shape.
Drs services Nurses services
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