ECP3704 EXAM 2 EXAM WITH CORRECT
ACTUAL QUESTIONS AND CORRECTLY WELL
DEFINED ANSWERS LATEST ALREADY GRADED
A+
Terms in this set (49)
Joe prefers a three pack of soda to More is better
a six-pack. What properties does
this preference violate?
Completeness
Transitivity
More is better
Diminishing MRS
When the price of one good Lower indifference curve since real income is
increases, the associated income now lower
effect is represented by a move
from one indifference curve to a
Lower indifference curve since real
income is now higher
Lower indifference curve since real
income is now lower
Higher indifference curve since real
income is now higher
Higher indifference curve since real
income is now lower
, When the price of one good Move along a given indifference curve holding
decreases, the associated real income constant
substitution effect is represented by
a
Move from one indifference to a
higher indifference curve since real
income is now higher
Move from one indifference to a
lower indifference curve since real
income is now lower
Move along a given indifference
curve holding real income constant
Move along a given indifference
curve since real income increases
The substitution affect isolates the The change in the relative prices of two goods
change in the consumption of a
good caused by:
The lower "real" income
The change in the relative prices of
two goods
The change in consumer
preferences
None of the statements associated
with this question are correct
ACTUAL QUESTIONS AND CORRECTLY WELL
DEFINED ANSWERS LATEST ALREADY GRADED
A+
Terms in this set (49)
Joe prefers a three pack of soda to More is better
a six-pack. What properties does
this preference violate?
Completeness
Transitivity
More is better
Diminishing MRS
When the price of one good Lower indifference curve since real income is
increases, the associated income now lower
effect is represented by a move
from one indifference curve to a
Lower indifference curve since real
income is now higher
Lower indifference curve since real
income is now lower
Higher indifference curve since real
income is now higher
Higher indifference curve since real
income is now lower
, When the price of one good Move along a given indifference curve holding
decreases, the associated real income constant
substitution effect is represented by
a
Move from one indifference to a
higher indifference curve since real
income is now higher
Move from one indifference to a
lower indifference curve since real
income is now lower
Move along a given indifference
curve holding real income constant
Move along a given indifference
curve since real income increases
The substitution affect isolates the The change in the relative prices of two goods
change in the consumption of a
good caused by:
The lower "real" income
The change in the relative prices of
two goods
The change in consumer
preferences
None of the statements associated
with this question are correct