Business > EXAM > MECO 6303 /MECO 6303 Final Exam 2. Questions With Answers. Complete Solution. (All)

MECO 6303 /MECO 6303 Final Exam 2. Questions With Answers. Complete Solution.

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A consumer that chooses to spend all of her income in the figure will be at point(s) A. B. B. E. C. C or E. D. A, B, or C. A consumer that chooses to spend less than all of her income in the figu ... re will be at a point like A. D. B. E. C. C or E. D. A, B, or C. A consumer that chooses to spend all of her income on Potato Chips in the figure will be at a point like A. D. B. C. C. C or E. D. A, B, or C. E. A. A consumer that chooses to spend all of her income on Diet Coke in the figure will be at a point like A. D. B. C. C. C or E. D. A, B, or C. 2. Garbage and pain can be represented by indifference curves that are A. bowed out B. bowed in C. straight lines D. right angles Left shoes and right shoes can be represented by indifference curves that are A. bowed out B. bowed in C. straight lines D. right angles Nickels and dimes can be represented by indifference curves that are A. bowed out B. bowed in C. straight lines D. right angles 3. Along the demand curve A. the income effect must be positive B. the income effect must be negative C. the income effect may be positive or negative D. income effect and the substitution effect may be in the same or in opposite directions. E. c and d of the above Along the demand curve A. the income effect must be positive B. the income effect must be negative C. the substitution effect must be negative (a rise in price causes a decline in quantity demanded) D. income effect and the substitution effect must both be negative E. income effect and the substitution effect must both be positive To derive the demand curve for a good the A. income effect must be greater than the substitution effect. [Show More]

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