How can a budget line shift parallel to itself without a change in income? How can...
How can a budget line shift parallel to itself without a change
in income? How can a budget line rotate
clockwise without the horizontal intercept changing if the money
price of y (the good on the vertical
axis) does not change?
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How can a budget line shift parallel to itself without a change
in income? How can...
How can a budget line rotate clockwise without the horizontal intercept changing if the money price...
How can a budget line rotate clockwise without the horizontal intercept changing if the money price of the good on the vertical axis does not change?
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...
INDICATE WHETHER THE STATEMENT IS TRUE OR FALSE. If there are two goods and the prices...
INDICATE WHETHER THE STATEMENT IS TRUE OR FALSE. If there are two goods and the prices of both goods rise, then the budget line must become steeper. A decrease in income pivots the budget line around the bundle initially consumed. If all prices are doubled and money income is left the same, the budget constraint does not change because relative prices do not change. If good 1 is on the horizontal axis and good 2 is on the vertical axis,...
A leftward shift of a consumer's budget line to a position parallel with the original one...
A leftward shift of a consumer's budget line to a position parallel with the original one could indicate that the Multiple Choice price of one product has decreased in relation to the other. prices of both products have decreased in the same proportion. consumer's money income has increased and the prices of both products have also increased but proportionately less consumer's money income has increased but the prices of both products have increased proportionately more. Prev 18 of 40 Next>
Good 2 Good 1 Refer to the above graph. The shift of the budget line from AB to CD is consistent with: Select one:...
Good 2 Good 1 Refer to the above graph. The shift of the budget line from AB to CD is consistent with: Select one: an increase in the price of Good 1 and no change in the price of Good 2. an increase in monoy income. a decrease in the price of Good 2 and no change in the price of Good 1. a decrease in money income
I have the correct answers for number 1 and 2. I just don't understand why it...
I have the correct answers for number 1 and 2. I just don't
understand why it rotates counterclockwise from the
intersection.
1. A consumer has $100 per day to spend on product A, which has a unit price of $7, and product 且which has a unit priceof $15 What is the slope of e budget line if good A is on the zontal axis and good B is on the vertical axis? C)-15/7 D) 7/15 7 2. In question 1,...
Suppose that Andrew spends all of his income on good X and good Y. Then a...
Suppose that Andrew spends all of his income on good X and good Y. Then a doubling of the price of both goods plus a tripling of his income will: Shift the budget line up and rotate it Shift the budget line down and rotate it Rotate the budget line but not shift it Shift the budget line up but not rotate it
Panel A CandyPopcorned Edit Coordinates (0,0) The image is a graph labeled Panel A that shows...
Panel A CandyPopcorned Edit Coordinates (0,0) The image is a graph labeled Panel A that shows a shift in the optimum commodity bundle of a consumer who consumes candies and popcorn. The horizontal axis measures candies, and the vertical axis measures popcorn. There is a downward-sloping, linear line and a downward-sloping, convex curve that are tangent to each other at a point labeled d. There is a rotation of the budget line on the horizontal axis such that the new...
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.
Your name: Student ID: ECON 220: PROBLEM SET 2 Due Date: Monday, February 17th, 2020 Part...
Your name: Student ID: ECON 220: PROBLEM SET 2 Due Date: Monday, February 17th, 2020 Part 1: Multiple choice questions (Although it's not required, make sure you can explain your answer). 1 point each. 1. An increase in an individual's income without changing relative prices will a. rotate the budget constraint about the X-axis. b. shift the indifference curves outward. c. shift the budget constraint outward in a parallel way. d. rotate the budget constraint about the Y axis. 2....
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...
A leftward shift of a consumer's budget line to a position parallel with the original one could indicate that the Multiple Choice price of one product has decreased in relation to the other. prices of both products have decreased in the same proportion. consumer's money income has increased and the prices of both products have also increased but proportionately less consumer's money income has increased but the prices of both products have increased proportionately more. Prev 18 of 40 Next>
Good 2 Good 1 Refer to the above graph. The shift of the budget line from AB to CD is consistent with: Select one: an increase in the price of Good 1 and no change in the price of Good 2. an increase in monoy income. a decrease in the price of Good 2 and no change in the price of Good 1. a decrease in money income
I have the correct answers for number 1 and 2. I just don't
understand why it rotates counterclockwise from the
intersection.
1. A consumer has $100 per day to spend on product A, which has a unit price of $7, and product 且which has a unit priceof $15 What is the slope of e budget line if good A is on the zontal axis and good B is on the vertical axis? C)-15/7 D) 7/15 7 2. In question 1,...
Your name: Student ID: ECON 220: PROBLEM SET 2 Due Date: Monday, February 17th, 2020 Part 1: Multiple choice questions (Although it's not required, make sure you can explain your answer). 1 point each. 1. An increase in an individual's income without changing relative prices will a. rotate the budget constraint about the X-axis. b. shift the indifference curves outward. c. shift the budget constraint outward in a parallel way. d. rotate the budget constraint about the Y axis. 2....
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