Question

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 the constraint (5) in a parallel manner, thereby s set and reducing choice. Comparing two different consumption bundles, x and y, if x is more preferred than is y, we say x is (6... than y. If x is exactly as preferred as is y, the consumer is said to be (7... between x and y. Economists usually make some assumptions about the consistency of consumer's preference. The (8) good 2 1 is a (3)... to good 2 rinking the budgrt axiom states that any two bundles can be compared, while the (9).. axiom assume that any bundle is as least as good as itself. When more of a commodity is always preferred, the commodity is a good. (10)... are goods that are always consumed together in fixed proportions, while two goods are (11).. if the consumer is willing to substitute one good for the other at a constant rate. The collection of all indifference curves for a given preference relation is an (12) The slope of an indifference curve is its (13).... It can be interpreted as how much the consumer is willing to give up of good 2 to acquire more of good 1. The consumer's (14).... is the set of all affordable bundles. Consumers maximize a measure of (15).... Each consumer has a utility fanction that determines the level of total utility good's or service's (17) containing all the utility-maximizing bundles traced out as pi changes, with pz and y constant, generated by his or her (16..., the goods and services that are consumed. A is the additional utility generated by consuming one more unit of the good or service. is the (18).. The plot of the xicoordi against pi is the (19)...curve for commodiry 1. A plot of quantity demanded against income is called an (20) curve. nate of the pi- price offer curve

Answer 1

1) inferior

2) Giffen

3) ordinary

4) rightwards

5) leftwards

6) revealed preferred

7) indifferent

8) complete

9) reflexive

10) gross complementary

11) gross substitutes

12) indifference map

13) marginal rate of substitution

14) budget set

15) utility

16) Consumption

17) Marginal utility

18) price consumption curve

19) demand

20) engel