1)The households cannot afford the points

Select one:

a.On the budget line

b.Below the budget tine

c.Beyond the budget line

d.None of the listed answers

2)If the price elasticity of demand for a good is 4, then a 2 percent decrease in price results in

Select one:

a.A 2 percent Increase in quantity demanded

b.A 8 percent decrease in quantity demanded

c.An 8 percent increase in quantity demanded

d.0.5 percent increase in quantity demanded

3)Suppose that your income elasticity of demand for Sandwich is negative, It means that:

Select one:

a.Sandwich are an inferior good for you.

b.You must not enjoy eating sandwich.

c.Your demand curve for sandwich Is not downward sloping.

d.Sandwich is a complement good.

4)Suppose that the total utility of one lunch is 200, and the marginal utility of the second lunch Is 90, so the total utility of two lunches is

Select one:

a.90

b.less than 200

c.290

d.110

5)A rise in the price of coffee from $1.5 to $2.8 results in the quantity of tea demanded from 200 packets to 260 packets a day. Then the cross elasticity of demand will be

Select one:

a.-0.44

b.-2.37

c.0.42

d.2.37