A decrease in the price of good Y will have what effect on the budget line on a normal X—Y graph?
0 Parallel inward shift of the line
0 Increase the vertical intercept <nght answer
0 Parallel outward shift of the line
6 . Decrease the horizontal intercept
139. Suppose that three consumers are in the market for good X. Consumer 1's (inverse) PX =
20 - Qx; Censumer 2's (inverse) demand is PX = 20 - 2Qx; and Consumer 3‘s (inverse) demand
is PX = 20 - 4Qx. When PX = $10, the market will demand
A. 17.5 units an
If a ﬁrm offers to pay a worker $10 for each hour of leisure the worker gives up, then the opportunities confronting the worker will be given by the:
6 . convex curve from the origin.
0 straight line with a positive slope.
O concave curve from the origin.
At any point on an indifference curve, the slope indicates:
9 . how the total satisfaction of the consumer changes with different market baskets.
O the way the consumer's budget is allocated between the two goods.
0 the market rate of substitution between
Managers can get workers to work longer hours:
0 with lower overtime pay in excess of regular hourly pay.
0 with higher overtime pay in excess of regular hourly pay. <—right
6 . by increasing wages on all hours worked.
0 by lowering wages on all hours wor
After a price decrease for good X. the new consumer equilibrium level of good X will be:
0 indeterminate without more information. <—right
o . lower than before the price change.
0 the same as before the price change.
0 higher than before the price change
If money income triples and the price of all goods doubles, then the:
0 budget line will shift in.
o . consumer will buy more of normal goods.
0 consumer is worse off due to inflation.
0 budget line remains unchanged.