ECP3704 EXAM 2 EXAMS WITH
CORRECT ACTUAL QUESTIONS
MERGED WITH CORRECT COMPLETE
SOLUTIONS|| ALREADY GRADED A+ ||
2026-2027 LATEST UPDATE!!!
Joe prefers a three pack of soda to a six-pack. What properties does
this preference violate?
Completeness
Transitivity
More is better
Diminishing MRS - ANSWER-More is better
When the price of one good increases, the associated income 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 - ANSWER-
Lower indifference curve since real income is now lower
When the price of one good decreases, the associated 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 -
ANSWER-Move along a given indifference curve holding real income
constant
The substitution affect isolates the 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 -
ANSWER-The change in the relative prices of two goods
Given that income is $750 and PX = $32 and PY = $8, what is the
market rate of substitution between goods X and Y?
-0.75
-3
CORRECT ACTUAL QUESTIONS
MERGED WITH CORRECT COMPLETE
SOLUTIONS|| ALREADY GRADED A+ ||
2026-2027 LATEST UPDATE!!!
Joe prefers a three pack of soda to a six-pack. What properties does
this preference violate?
Completeness
Transitivity
More is better
Diminishing MRS - ANSWER-More is better
When the price of one good increases, the associated income 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 - ANSWER-
Lower indifference curve since real income is now lower
When the price of one good decreases, the associated 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 -
ANSWER-Move along a given indifference curve holding real income
constant
The substitution affect isolates the 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 -
ANSWER-The change in the relative prices of two goods
Given that income is $750 and PX = $32 and PY = $8, what is the
market rate of substitution between goods X and Y?
-0.75
-3
