8) Aneesh can buy either pizzas or sandwiches. If the price of both pizza and sandwiches doubles and so does Aneesh's money income, we can deduce that Aneesh's budget constraint will (a) shift in but remain parallel to the old one. (b) shift out but remain parallel to the old one. (c) remain unchanged. (d) swivel in so that the slope of the budget constraint is doubled. 9) An equation showing the output that will result from a combination of inputs is (a) an isoquant. (b) an indifference curve. (c) a production function. (d) an isocost function. 10) If a monopolistically competitive firm were making positive economic profits, we would expect (a) the market to become more like perfect competition. (b) other firms to enter the market. (c) the firm to continue making positive profits. (d) the market to become an oligopoly. continued on next page . .. 11) In oligopoly, firms (a) are able to influence price only if the products produced by oligopolists are differentiated. (b) by virtue of their size are able to influence price regardless of whether or not the product is differentiated or standardised. (c) have no influence over price regardless of whether or not the product is differentiated or standardised. (d) are able to influence price only if the products produced by the oligopolists are standardised. 12) Assuming leisure is a normal good, if the income effect is greater than the substitution effect, a wage increase (a) will increase labour supply. (b) will have no effect on labour supply. (c) will decrease labour supply. (d) could cause either an increase or a decrease in labour supply