An Indifference curve slope down towards right since more of one commodity and less of another result in which of the following?
Anonymous Quiz
21%
Decreasing expenditure
41%
Maximum satisfaction
22%
Greater satisfaction
16%
Same satisfaction
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Which one of the following is not a property of indifference curve?
Anonymous Quiz
18%
Negatively sloping.
23%
Convex to the point of origin.
44%
Indifference curves necessarily have to be parallel.
16%
Two indifference curves do not intersect each other.
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A rectangular hyperbola shaped demand curve on all its points has
Anonymous Quiz
25%
Equal slopes of the price demand curve
32%
Price elasticity equal to unity
20%
Varying price elasticity
22%
Both slope and price elasticity equal
👍10
According to the IC approach, at the point of equilibrium:
Anonymous Quiz
20%
The slope of I C> slope of the price line
28%
The slope of IC < slope of the price line
21%
The slope of IC ≠ slope of the price line
32%
The slope of IC= slope of the price line
👍8
The substitution effect describes how
Anonymous Quiz
22%
an increase in income causes buyers to purchase different products
20%
the opportunities for minorities are affected by affirmative action's policies
37%
additional satisfaction from each additional unit of the product consumed in a given time decreases
21%
a price increase creates incentives for buyers to seek alternatives
👍12
Ordinal utility analysis of the consumer's behaviour is considered superior to the cardinal utility analysis mainly due to
Anonymous Quiz
25%
Assumption of the rationality of the consumer’s behaviour.
26%
Possibility of the derivation of the consumer's demand.
26%
Bifurcation of price effects into income and substitution effects.
23%
Consideration of the available limited resources for satisfying consumer’s demand.
👍6
In case the quantity of a commodity demanded changes due to change in price of the commodity, it is called
Anonymous Quiz
18%
Increase or decrease in demand
34%
Expansion or contraction of demand
37%
Law of demand
10%
Positive change in demand
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The revealed preference theory of consumer’s behaviour is not based on
Anonymous Quiz
18%
Consistency
28%
Strong Ordering
43%
Negative income elasticity of demand
11%
Transitivity
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The Indifference curve approach to consumer's behaviour is based on:
Anonymous Quiz
15%
Strong ordering
18%
Weak ordering
58%
Cardinal utility hypothesis
9%
None of the above
👍10👎3
Normally the demand curve will have a _______________ shape.
Anonymous Quiz
25%
Upward sloping
49%
Downward sloping
16%
Vertical
10%
Horizontal
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The elasticity for the demand of durable goods is __________.
Anonymous Quiz
27%
Zero
32%
Equal to unity
28%
Greater than unity
13%
Less than unity
👍15👎2
A perfectly competitive market has
Anonymous Quiz
20%
firms that set their own prices.
18%
only one seller.
12%
at least a few sellers.
49%
many buyers and sellers
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If increase in the price of blue jeans leads to a decrease in the demand for Tennis shoes, then blue jeans and tennis shoes are
Anonymous Quiz
45%
complements
39%
inferior goods.
16%
normal goods.
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The law of demand states that an increase in the price of a good
Anonymous Quiz
17%
increases the supply of that good.
40%
decreases the quantity demanded for that good along its demand curve.
28%
decreases the demand for that good.
15%
increases the quantity supplied of that good along its supply curve
👍14
If an increase in the price of a good has no impact on the total revenue in that market, demand must be
Anonymous Quiz
44%
price inelastic.
37%
unit price elastic.
19%
price elastic.
👍14👎6
the law of supply states that an increase in the price of a good
Anonymous Quiz
37%
increases the quantity supplied of that good along its supply curve.
35%
increases the supply of that good.
27%
decreases the demand for that good.
👍10
If an increase in consumer incomes leads to a decrease in the demand for camping equipment, then camping equipment is
Anonymous Quiz
31%
a normal good.
52%
an inferior good.
17%
substitute good.
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That the supply curve for ice cream cones is upward sloping indicates that
Anonymous Quiz
27%
the marginal cost of providing ice cream cones increases as more cones are produced.
27%
as the price of ice cream cones increases, the production technology is upgraded.
21%
as the price increases, the opportunity cost of making ice cream cones decreases.
25%
all of the above.
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Which of the following shifts the demand for watches to the right?
Anonymous Quiz
31%
an increase in the price of watches
53%
a decrease in the price of watch batteries if watch batteries and watches are complements
17%
a decrease in consumer incomes if watches are a normal good
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If a fisherman must sell all of his daily catch before it spoils for whatever price he is offered, once the fish are caught the fisherman's price elasticity of supply for fresh fish is
Anonymous Quiz
28%
zero
34%
infinite.
17%
one.
22%
unable to be determined from this information.
👍25👎6
A decrease in supply (shift to the left) will increase total revenue in that market if
Anonymous Quiz
28%
demand is price inelastic.
32%
supply is price elastic.
21%
supply is price inelastic.
19%
demand is price elastic.
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