Assignment #5

Assignment #5 - Name_ Student ID_ Econ 003: Microeconomics...

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Name___________________________________ Student ID_______________________________ Econ 003: Microeconomics Assignment # 05 Choose the one alternative that best completes the statement or answers the question. 1. In figure 1, if line AB is the consumer’s budget line, then her best purchase is shown by: a. point R b. point Q c. point P d. point A.
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2. Starting with the budget line AB, if the price of X falls then, other things remaining the same, the consumer will choose: a. point Q b. point P c. point R d. none of the above. 3. A fall in the price of X, other things remaining the same, will make the consumer: a. worse off as she moves down from indifference curve I’ to I b. better off as she moves up from indifference curve I to I’ c. neither better off nor worse off d. stick to her original purchase plan. 4. Starting with the budget line AB, the consumer moves a. from P to Q due to a price effect b. from P to R due to the substitution effect of a price change c. from R to Q due to the income effect of a price change
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This test prep was uploaded on 04/10/2008 for the course ECON 003 taught by Professor Das during the Spring '08 term at UC Riverside.

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Assignment #5 - Name_ Student ID_ Econ 003: Microeconomics...

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