Question
. Given an endowment (1,2), ceteris paribus if the prices of x1 and x2 double then the budget line remains unchanged. 2. As long as
. Given an endowment (1,2), ceteris paribus if the prices of x1 and x2 double then the budget line remains unchanged. 2. As long as leisure is a normal or superior good, paying higher hourly wages for working overtime can increase the amount of optimal leisure. 3. Assume there are two goods. If the price of one good increases ceteris paribus, then all net sellers of that good remain net sellers, but some net buyers of the other good may switch to net sellers. 4. The Federal Reserve Bank can affect the marginal rate of substitution of consumers. 5. If there are n goods and a consumer is a net seller of n - 1 of them, then an increase of 10% in all prices will make this consumer better off. 6. The labor supply model is flawed because it assumes work is bad, and many people seem to like working
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