Question

Which of the following describes the event that happens when a consumer moves away from the...

Which of the following describes the event that happens when a consumer moves away from the origin onto a higher indifference curve?

Select one:

a. A less preferred combination of goods is reached by the consumer.

b. Consumers are consuming less.

c. A more preferred combination of goods is reached by the consumer.

d. A more affordable combination of goods is reached by the consumer.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

When a consumer moves away from the origin onto a higher indifference curve, he reaches more preferred combinations of goods. So the correct option that describes the event is:

(c) A more preferred combination of goods is reached by the consumer.

Kindly upvote :)

Add a comment
Know the answer?
Add Answer to:
Which of the following describes the event that happens when a consumer moves away from the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • IS. Which of the following best describes what happens when the price of oranges increases? a)...

    IS. Which of the following best describes what happens when the price of oranges increases? a) There is a shift to the right in the demand curve for oranges b) There is a shift to the left of the demand curve for oranges c) There is a shift along the demand curve for oranges d) There is a no change in the demand curve for oranges 16. Which of the following best describes what happens when consumer income increases? a)...

  • The following graph shows three indifference curves and budget constraints for a consumer. The consumer is...

    The following graph shows three indifference curves and budget constraints for a consumer. The consumer is initially consuming at point A, on the indifference curve Ui and is constrained by the budget constraint BC1 (indicated by the blue line) Bc3 10 Ul BC BC 10 Suppose the government provides this consumer a subsidy on good x, which effectively lowers the price of x. This is represented by a of BC1 out away from the origin. The result is this consumer...

  • If the demand for good decreases when income increases, the good is called an ().... If...

    If the demand for good decreases when income increases, the good is called an ().... If the demand for good 1 goes up when the price of good 2 goes up, good 1 is (2...or If the demand for good 1 goes down when the price of good 2 goes up, good 1 is a (3 Increases in income m shift the constraint (4).. in a parallel manner, thereby enlarging the set and improving choice Decreases in income m shift...

  • 1. Which of the following statements best describes consumer surplus in the supply and demand model?

    1. Which of the following statements best describes consumer surplus in the supply and demand model?Use letters in alphabetical order to select optionsAConsumer surplus is the area in the supply and demand model that is below the market price and above the demand curve.BConsumer surplus is the area in the supply and demand model that is above the market price and above the demand curve.CConsumer surplus is the area in the supply and demand model that is below the market...

  • 1. When a consumer maximizes utility, which of the following is NOT true? a. The indifference curve is tangent to...

    1. When a consumer maximizes utility, which of the following is NOT true? a. The indifference curve is tangent to the budget line b. Marginal utility per dollar is maximized c. The marginal rate of substitution is equal to the relative price d. The marginal utility per dollar spent is equal across all goods

  • when consumers are given more time to adjust to higher prices Ос. 50%. D. 2596. QUESTION...

    when consumers are given more time to adjust to higher prices Ос. 50%. D. 2596. QUESTION 17 When consumers are given more time to adjust to higher prices: OA consumers have more choices from which to select B. consumers keep quantity demanded the same consumers have fewer choices from which to select. D demand becomes less elasti C. QUESTION 18 The demand curve for cigarettes is probably: A. elastic a perfect substitutable good unitary elastic

  • 21.    A positive income elasticity of demand coefficient indicates that     a.    a product is an...

    21.    A positive income elasticity of demand coefficient indicates that     a.    a product is an inferior good     b.    two products are substitute goods     c.    two products are complementary goods     d.    a product is a normal good 22.    All the combinations of two products that will yield the same total utility to a consumer are reflected in     a.    the budget line     b.    the marginal rate of substitution     c.    an indifference curve     d.    the...

  • Which of the following describes what happens when bonds are issued when the market interest rate...

    Which of the following describes what happens when bonds are issued when the market interest rate is less than the stated interest rate? Multiple Choice The bonds are issued at a premium. The bonds are issued at less than their face value. o It raises the effectiv It raises the effective interest rate above the stated rate of interest. o o The bands are su The bonds are issued at a premium and the effective interest rate is higher than...

  • d See Hint Let x1 represent a typical good (i.e., consumers prefer more of good x1...

    d See Hint Let x1 represent a typical good (i.e., consumers prefer more of good x1 to less). Let x2 represent a second good in a two-good world. Both goods have continuous indifference curves and income, m, is greater than $0. Under which of the following situations would consumers spend all of their income on just x1? Choose one or more: A. X1 and x2 are perfect complements. B. The consumer has Cobb-Douglas preferences, and p2 > pi. C. xi...

  • Classical economists made 4 assumptions about conusmer behavior, from which they deduced consumer theory. These assumpti...

    Classical economists made 4 assumptions about conusmer behavior, from which they deduced consumer theory. These assumptions are (select that apply) A. Consumers are purposeful. B. Consumers are rational. C. Consumers desire a variety of goods. D. Consumers must pay for goods consumed. E. Consumers have limited incomes. F. Consumers have access to credit when wealth and income are inadequate.

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT