Question 1

Suppose the quantity of x is measured on the horizontal axis.If the income consumption curve is vertical,then the income elasticity of demand for x is

Accepted Answer

A)  0.
B)  1.
C)  -1.
D)  There is not enough information to determine the income elasticity of demand for x.

Question 2

The compensated demand curve only responds to the income effect from a price change.

Accepted Answer

A) True 
 B)False

Question 3

-The above figure shows Bobby's indifference map for juice and snacks.Also shown are three budget lines resulting from different prices for snacks.As the price of snacks rises,the price for juice

Accepted Answer

A)  stays the same.
B)  increases.
C)  decreases
D)  might change,but there is not enough information to determine.

Exam 4: Demand

The compensated demand curve only responds to the income effect from a price change.

Correct Answer
verified

-The above figure shows Bobby's indifference map for juice and snacks.Also shown are three budget lines resulting from different prices for snacks.As the price of snacks rises,the price for juice

Correct Answer
verified

Suppose the quantity of x is measured on the horizontal axis.If the income consumption curve is vertical,then the income elasticity of demand for x is

Correct Answer
verified

Exam 4: Demand

The compensated demand curve only responds to the income effect from a price change.

Correct AnswerverifiedShow Answer

-The above figure shows Bobby's indifference map for juice and snacks.Also shown are three budget lines resulting from different prices for snacks.As the price of snacks rises,the price for juice

Correct AnswerverifiedShow Answer

Suppose the quantity of x is measured on the horizontal axis.If the income consumption curve is vertical,then the income elasticity of demand for x is

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified