Econ_11_Prac_Quiz_3

Econ_11_Prac_Quiz_3 - Practice Quiz 3 Econ 11...

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Practice Quiz 3 1 Econ 11 Microeconomics Practice Quiz 3 V-1 1.If an individual buys only two goods and these must be used in a fixed relationship with one another (e.g., coffee and cream for a coffee drinker who never varies the amount of cream used in each cup), then a. there is no substitution effect from a change in the price of coffee b. there is no income effect from a change in the price of coffee c. Giffen's Paradox must occur if both coffee and cream are inferior goods d. an increase in income will not affect cream purchases V-2 2. Assume x and y are the only two goods a person consumes. If after a rise in p X the quantity demanded of y increases, one could say a. the income effect dominates the substitution effect b. the substitution effect dominates the income effect c. it is still impossible to determine whether the substitution or income effect dominates d. none of the answers are correct V-3 3. An individual's demand curve a. represents the various quantities that a consumer is willing
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This note was uploaded on 03/05/2008 for the course ECON 11 taught by Professor Cunningham during the Winter '08 term at UCLA.

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Econ_11_Prac_Quiz_3 - Practice Quiz 3 Econ 11...

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