quiz2 - 3. (2 points) If the price of orange juice rise...

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Quiz #2 1. (4 points) For the utility function U=X+Y , draw a set of indifference curves showing utility levels U=12 , U=16 , U=20 , and U=24 . Are X and Y perfect substitutes or perfect complements? 2. (4 points) List as many conditions as you can for the incidence of a tax to fall entirely on consumers.
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Unformatted text preview: 3. (2 points) If the price of orange juice rise 10%, and as a result that the quantity demanded falls by 10%, then one can conclude that the demand for orange juice a. is perfectly elastic. b. is inelastic. c. has a unitary elasticity. d. has a constant elasticity....
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