The consumers utility will be unchanged

Assignment Help Microeconomics

Reference no: EM13687620

If good X is normal and good Y is inferior, following a loss of income:

1. The consumer's utility will be unchanged.

2. The new optimal bundle will contain more Y and less X.

3. The new optimal bundle will contain more X and less Y.

4. The new optimal bundle will contain more Y and less X.

Reference no: EM13687620

Questions Cloud

Describe the steps necessary to output 8-bit data : Describe the steps necessary to output 8-bit data to a set of LEDs.

Consider the law of demand and the determinants of demand : Using a real world experience in a free market (not government regulated) to explain a change that occurred in supply or demand as a result of world events that led to the need for a move among two equilibrium states. Describe the process of how that..

Money market is initially in equilibrium : Employing Figure 4-2 above, the money market is initially in equilibrium at point G and after the economy moves to equilibrium, the Federal Reserve increases the money supply by 500. We would observe:

Demand for real money balances-money supply : Presume real output is 12,500, and the demand for real money balances is Md/P = Y/4 - 125i. If the equilibrium interest rate is 7 %, compute the money supply. If the central bank sets the interest rate at 8 % what is the new money supply?

The consumers utility will be unchanged : If good X is normal and good Y is inferior, following a loss of income: The consumer's utility will be unchanged.

Investment necessary to attract and retain investment : The minimum return on investment necessary to attract and retain investment is the risk-adjusted:

Total revenue-profits are maximized at same level of output : Total Revenue and profits are maximized at the same level of output if:

Curator of a museum that charges a fee to enter : "If you are the curator of a museum that charges a fee to enter and your boss wants you to increase revenue, what price change do you make?"

User Account

All Pages