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ANSWER-
Budget constraint - Budget constarint shows the various combinations of 2 goods which a consumer can buy with his limited income. The budget line shift parllel when there is change in income of the consumer(price remaining constant) .With a decrease in income the budegt constraint shifts inward parllel which means less of both the good can by purchased and with an increase in income the budget constraint shifts outward parllel which means more of bothe the good can be purchased.
Given in question MORE OF BOTH NORMAL GOODS AND INFERIOR GOODS consumer will buy if there is an outward shift in the budget constraint.
So, the answer is (c.) more of both normal goods and inferior goods.
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13. Which of the following will a consumer buy if there is an shift outward in...
4. Suppose that a consumer faces the choice of how many left shoes to buy and...
4. Suppose that a consumer faces the choice of how many left shoes to buy and how many right shoes to buy if the price of a shoe is $20 and the consumer has $200 to spend on shoes. (20 points in total) a. Write down the consumer's budget constraint, assuming that we will measure left shoe consumption on the X axis and right shoe consumption on the Y axis. (5 points) b. Sketch a graph of the budget constraint....
otes more of its res B. Cause its producti its production possibilities curve to shift outward...
otes more of its res B. Cause its producti its production possibilities curve to shift outward in the future. on possibilities curve to shift inward in the future. urces to capital investment is likely to ase the sl ope of its production possibilities curve. its production possibilities curve slope of 6. The demand curve shows A. How B The C. How muc much people are willing and able to buy at every price amount that people are willing and able...
Place the correct answer for each of the folng N h The Budget Constraint: What the...
Place the correct answer for each of the folng N h The Budget Constraint: What the Consumer Can Afford 1. According to economists, people consume less than they desire because the supply is limited. a. True b. False Preferences: What the Consumer Wants 2. According to economists, people usually prefer to consume more than less. a. True b. False Optimization: What the Consumer Chooses 3. At the consumer's optimum, the consumer's valuation of two goods equals the market's valuation. a....
1. Economic growth can best be shown by: a. An outward shift of the production possibility...
1. Economic growth can best be shown by: a. An outward shift of the production possibility frontier b. An inward shift in the production possibility frontier c. A fall in GNP d. A lower GDP per person 2. A current account trade deficit means that... a. spending on imported goods and services equals the export earnings over a given period b. spending on imported goods and services is greater than the export earnings over a given period c. spending on...
Which of the following might cause the supply curve for an inferior good to shift to the right?
Which of the following might cause the supply curve for an inferior good to shift to the right? a. an increase in input prices b. a decrease in consumer income c, an improvement in production technology that makes production of the good more prod. a decrease in the number of sellers in the market
Sue has $120 to spend on movies and dinners this month. The price of a dinner...
Sue has $120 to spend on movies and dinners this month. The price of a dinner is $20 and the price of a movie is $10. a. Draw the budget constraint with dinners on the x-axis and movies on the y-axis. b. Graphically show Sue’s utility-maximizing bundle, assuming that both goods are normal goods. c. Graphically show Sue’s utility-maximizing bundle, assuming that dinner is a normal good and movie is an inferior good. d. If the price of a dinner...
4. Assume your budget is $30 and the price of goods A and B are $5/unit...
4. Assume your budget is $30 and the price of goods A and B are $5/unit for A and $3/ unit for B. a On the following graph, graph your budget constraint and mark the optimal consumption point. Mark this original budget constraint. Assume your budget increases to $45, correctly mark and draw your new budget constraint. c. Assume your budgct decreases to $15, correctly mark and draw your new budget d. Correctly draw in your income expansion path e....
Question 13 1 pts The following graphs shows eight different budget constraints (from A to H)...
Question 13 1 pts The following graphs shows eight different budget constraints (from A to H) for a consumer who consumes Fish and/or Chips. Which of the following illustrates how the budget constraint will change if the price of Fish were to decrease? Fish Fish D B c A 0 Chips Chips Fish Fish G H F 0 Chips Chips Cto D D to C Fto E E to F Question 20 1 pts Refer to the graph below where...
needed all the answers for the questions 13. If leisure is a normal good and the...
needed all the answers for the questions
13. If leisure is a normal good and the wage falls A. B. C. D. the substitution income effect will induce the consumer to take more leisure. the substitution effect will induce the consumer to take less leisure and the income effect will induce the consumer to take more leisure. the substitution effect will induce the consumer to take more leisure and the income effect will induce the consumer to take less leisure....
Which of the following describes the event that happens when a consumer moves away from the...
Which of the following describes the event that happens when a consumer moves away from the origin onto a higher indifference curve? Select one: a. A less preferred combination of goods is reached by the consumer. b. Consumers are consuming less. c. A more preferred combination of goods is reached by the consumer. d. A more affordable combination of goods is reached by the consumer.
4. Suppose that a consumer faces the choice of how many left shoes to buy and how many right shoes to buy if the price of a shoe is $20 and the consumer has $200 to spend on shoes. (20 points in total) a. Write down the consumer's budget constraint, assuming that we will measure left shoe consumption on the X axis and right shoe consumption on the Y axis. (5 points) b. Sketch a graph of the budget constraint....
otes more of its res B. Cause its producti its production possibilities curve to shift outward in the future. on possibilities curve to shift inward in the future. urces to capital investment is likely to ase the sl ope of its production possibilities curve. its production possibilities curve slope of 6. The demand curve shows A. How B The C. How muc much people are willing and able to buy at every price amount that people are willing and able...
Place the correct answer for each of the folng N h The Budget Constraint: What the Consumer Can Afford 1. According to economists, people consume less than they desire because the supply is limited. a. True b. False Preferences: What the Consumer Wants 2. According to economists, people usually prefer to consume more than less. a. True b. False Optimization: What the Consumer Chooses 3. At the consumer's optimum, the consumer's valuation of two goods equals the market's valuation. a....
4. Assume your budget is $30 and the price of goods A and B are $5/unit for A and $3/ unit for B. a On the following graph, graph your budget constraint and mark the optimal consumption point. Mark this original budget constraint. Assume your budget increases to $45, correctly mark and draw your new budget constraint. c. Assume your budgct decreases to $15, correctly mark and draw your new budget d. Correctly draw in your income expansion path e....
Question 13 1 pts The following graphs shows eight different budget constraints (from A to H) for a consumer who consumes Fish and/or Chips. Which of the following illustrates how the budget constraint will change if the price of Fish were to decrease? Fish Fish D B c A 0 Chips Chips Fish Fish G H F 0 Chips Chips Cto D D to C Fto E E to F Question 20 1 pts Refer to the graph below where...
needed all the answers for the questions
13. If leisure is a normal good and the wage falls A. B. C. D. the substitution income effect will induce the consumer to take more leisure. the substitution effect will induce the consumer to take less leisure and the income effect will induce the consumer to take more leisure. the substitution effect will induce the consumer to take more leisure and the income effect will induce the consumer to take less leisure....
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