Quiz2 - RUTGERS UNIVERSITY Department of Economics...

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RUTGERS UNIVERSITY Department of Economics Intermediate Microeconomics Analysis 01:220:320 Fall 2009 Instructor: Mriduchhanda Paul Quiz 2 1. Suppose the price of A is $2, the price of B is $3, and the consumer’s income is $50. Which of the following baskets is not on the consumer’s budget line? a) 10, 10 A B = = . b) 4, 14 A B = = . c) 8, 11.33 A B = = . d) 5, 5 A B = = . Ans: D 2. Suppose the price of A is $2, the price of B is $3, and the consumer’s income is $50. If A is plotted on the horizontal axis, the slope of the budget line is a) –0.67 b) –1.5 c) –25 d) –16.67 Ans: A 3. Suppose the price of A is $2 and the price of B is $3 and that good A is plotted on the horizontal axis. If the price of A doubles and the price of B triples, leaving the consumer’s income unchanged, the budget line a) Will become steeper. b) Will become flatter. c) Will shift in toward the origin. d)
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Quiz2 - RUTGERS UNIVERSITY Department of Economics...

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