Question 1 0 out of 1 points
Figure 1
Refer to Figure 1. A consumer that chooses to spend all of her income on Diet Coke in the
figure will be at a point like
Selected Answer: d. A, B, or C.
Answers: a. D.
b. C.
c. C or E.
d. A, B, or C.
Question 2 1 out of 1 points
2.2.2
Which of the following is a pure income effect for a particular consumer?
Selected a. and b. of the above are pure income effects
Answer:
Answers: A 5% increase in her income
A 5% increase in all of the prices she faces as a consumer
A 5% decrease in the price some of the main items she purchases as a
consumer
All of the above are pure income effects
a. and b. of the above are pure income effects
Question 3 0 out of 1 points
Along the demand curve
Selected Answer: e. c and d of the above
Answers:
, a. the income effect must be positive
b. the income effect must be negative
c. the income effect may be positive or negative
d. income effect and the substitution effect must be in the same direction
e. c and d of the above
Question 4 1 out of 1 points
Which of the following is most likely an inferior good?
Selected Answer: c. a bus ticket
Answers: a. an antique car
b. gasoline
c. a bus ticket
d. an airline ticket
Question 5 1 out of 1 points
5.2.1
The consumer buys Skittles and M&M’s (two types of candy) and has $20 to spend. T M&Ms is
on the Y axis. he price of Skittles is $2 and the price of M&M's is $2. She will choose a
consumption bundle where the slope of the budget line is
Selected Answer: 1
Answers: 2.
1
1/2.
2/3.
1/3.
Question 6 0 out of 1 points
6.2.1
If a seller sells the idential product to two separate markets, and if the elasticity of demand in
Market 1 is greater than the elasticity of demand in Market 2 (at every price), and if P1 is the
price in Market 1, and P2 is the price in Market 2, then, in order to maximize profits, he should
set the price so that
Selected Answer: P1 > P2
Answers: P1 > P2
P1 = P2
P1 < P2
All of the above are possible
Figure 1
Refer to Figure 1. A consumer that chooses to spend all of her income on Diet Coke in the
figure will be at a point like
Selected Answer: d. A, B, or C.
Answers: a. D.
b. C.
c. C or E.
d. A, B, or C.
Question 2 1 out of 1 points
2.2.2
Which of the following is a pure income effect for a particular consumer?
Selected a. and b. of the above are pure income effects
Answer:
Answers: A 5% increase in her income
A 5% increase in all of the prices she faces as a consumer
A 5% decrease in the price some of the main items she purchases as a
consumer
All of the above are pure income effects
a. and b. of the above are pure income effects
Question 3 0 out of 1 points
Along the demand curve
Selected Answer: e. c and d of the above
Answers:
, a. the income effect must be positive
b. the income effect must be negative
c. the income effect may be positive or negative
d. income effect and the substitution effect must be in the same direction
e. c and d of the above
Question 4 1 out of 1 points
Which of the following is most likely an inferior good?
Selected Answer: c. a bus ticket
Answers: a. an antique car
b. gasoline
c. a bus ticket
d. an airline ticket
Question 5 1 out of 1 points
5.2.1
The consumer buys Skittles and M&M’s (two types of candy) and has $20 to spend. T M&Ms is
on the Y axis. he price of Skittles is $2 and the price of M&M's is $2. She will choose a
consumption bundle where the slope of the budget line is
Selected Answer: 1
Answers: 2.
1
1/2.
2/3.
1/3.
Question 6 0 out of 1 points
6.2.1
If a seller sells the idential product to two separate markets, and if the elasticity of demand in
Market 1 is greater than the elasticity of demand in Market 2 (at every price), and if P1 is the
price in Market 1, and P2 is the price in Market 2, then, in order to maximize profits, he should
set the price so that
Selected Answer: P1 > P2
Answers: P1 > P2
P1 = P2
P1 < P2
All of the above are possible
