IC2
Y
IC
1 1
B
0
Y A
* C
X
1 20
0
The above Figure shows the budget line and the IC of a consumer who consumes only X and Y. Knowing
that PX = $1 and PY = $2. (One or more of the choices can be right)
1- What is the consumer total income?
2- What is the quantity of Y*? Answer 5 Units
3- What is the slope of the Budget line?
4- What is the slope of the Indifference curve at the point A?
5- If the consumer is spending all of his income, how much it will cost her to consume one additional
unit from Y?
A. Zero Cost
B. One unit of X
C. Two units of X
D. $1
6- Which of the following statement is true about point B?
A. It gives the same utility as point A
B. It gives higher utility that point A
C. It is unattainable given the consumer income
D. It is attainable but the consumer does not favor it
F. None of the above
This study source was downloaded by 100000840275362 from CourseHero.com on 06-15-2022 10:12:02 GMT -05:00
https://www.coursehero.com/file/18980968/Microeconomics-Practice-Questions-4/
Y
IC
1 1
B
0
Y A
* C
X
1 20
0
The above Figure shows the budget line and the IC of a consumer who consumes only X and Y. Knowing
that PX = $1 and PY = $2. (One or more of the choices can be right)
1- What is the consumer total income?
2- What is the quantity of Y*? Answer 5 Units
3- What is the slope of the Budget line?
4- What is the slope of the Indifference curve at the point A?
5- If the consumer is spending all of his income, how much it will cost her to consume one additional
unit from Y?
A. Zero Cost
B. One unit of X
C. Two units of X
D. $1
6- Which of the following statement is true about point B?
A. It gives the same utility as point A
B. It gives higher utility that point A
C. It is unattainable given the consumer income
D. It is attainable but the consumer does not favor it
F. None of the above
This study source was downloaded by 100000840275362 from CourseHero.com on 06-15-2022 10:12:02 GMT -05:00
https://www.coursehero.com/file/18980968/Microeconomics-Practice-Questions-4/
