1. If p1 decreases, the budget line (1 pt) a. rotates to the left b. rotates to the right c. shifts in d. shifts out 2. Suppose a consumer's marginal utility of goods 1 and 2 is constant and equal to MU, = 6 and MUz = 2. What is the slope of this consumer's indifference curve? (1 pt) a. -1/3 b. -2 C. -3 d. -6 3. Suppose a consumer chooses between blue pencils and red pencils. S/he only cares about the total number of pencils and not their color. This is an example of: (1 pt) a. preferences over perfect complements b. preferences over perfect substitutes c. Cobb-Douglas preferences d. quasi-linear preferences 4. Which of the following utility functions is a monotonic transformation representing preferences over perfect substitutes? (1 pt) a. v(X1, X2) = Vx1X2 b. v (x1, X2) = VX1 + x2 c. v(x1,X2) = Vx1+ X2 d. v(X1, X2) = min{x1,x2} 5. Fixing p, and P2, the relationship between m and x, can be illustrated using the: (1 pt) a. indifference curve b. price offer curve c. demand curve d. Engel curve 6. In terms of price elasticity, the demand function q - 125 (1 pt) a. elastic b. unit elastic c. inelastic d. cannot be determined from the information given