True false 3 an increase in income will shift

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Unformatted text preview: k whether the following statements are true or false. No explanation needed. 1. If a good is inferior it cannot be represented with a Cobb- Douglas utility function. TRUE FALSE 2. The Engel curve for a Giffen good is downward sloping. TRUE FALSE 3. An increase in income will shift both the uncompensated and compensated demand curves. TRUE FALSE 4. Joseph likes pumpkin pie better than carrot cake. He is also indifferent between consuming carrot cake and banana bread. His preferences are incomplete. TRUE FALSE 5. Daniel preferences for Pizza and Sushi can be represented with U = P1/3·S2/3. Daniel is spending most of his income on sushi. TRUE FALSE 6. The change in consumer surplus as a result of a price increase cannot be smaller than equivalent variation. TRUE FALSE 7. If U = X + Y, then the ratio of prices dete...
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This note was uploaded on 02/12/2014 for the course ECON 100A taught by Professor Woroch during the Fall '08 term at University of California, Berkeley.

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