econ 2 - 1. If demand of good A increases when price of...

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1. If demand of good A increases when price of good B increase, what can we conclude about the relationship between good A and B? a. Complement b. Substitute c. Either of substitute or complement d. Neither of substitute nor complement 2. Students start to go the TAs’ review sessions after the first exam because they did not get the grades they wanted. What can you say about this event? a. The opportunity cost of going to the review increases b. The opportunity cost of not going to the review increases c. Students’ preferences have changed d. Both and c e. Both b and c 3. You are consuming two goods A and B. If the price of both goods increase then which one of the following is always true according to what you have learned? a. The amount of both goods you consume increase b. The amount of both goods you consume decrease c. The relative amount you consume would be the same d. None of the above is always true 4. You are consuming good A and B. Good A and good B is perfect substitute. Good A is on the vertical axis; good B is on the horizontal axis. As you consume more and more good B, what will happen? a. The marginal rate of substitution increases b. The marginal rate of substitution decreases c. The marginal rate of substitution remains constant d. Not enough information to conclude 5. You are consuming good A and B. A is normal good, and B is an inferior good. If the price of good A increase then what happen?
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This note was uploaded on 02/17/2012 for the course ECON 101 taught by Professor Tsmh during the Fall '10 term at BYU.

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econ 2 - 1. If demand of good A increases when price of...

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