Im not sure with these 4 multiple choice. please help me . Thank you and have a nice day
1.For a household that both consumes and produces a good, a decrease in the price of that good can possibly lead to: (select all that apply) A: A parallel outward shift of the budget line resulting in tan gency with a new in difference curve B:no change in the con sumption basket C:No change in the utility level D:A decrease in utility E:An increase in consumption of both goods 2.suppose that a self sufficient household produces (and consumes) com and potato. the current marginal rate of transformation is 2 pounds of potato for each pound of corn. If the international price of potato duplicates what should happen with the production level of corn of this household? A:it should decrease B:it should not change Cove can not determine it, we need more information Diit should increase 3.suppose that a self sufficient household produces (and consumes) com and potato. The current marginal rate of transformation is 2 pounds of potato for each pound of corn. How many pounds of corn is this household willing to give up in order to consume one additional pound of potato while keeping their utility level constant?* A:2 Bwe can not determine it, we need more information C C:1 D:0.5 4.suppose that an agricultural household produces (and consumes) corn and potato. This household can buy and sell in the marketits production. the current price of potato is $6/pound and the current price of corn is $3/pound. If the household is operating in a point of their PPF where the marginal rate of transformation is 1.5 (reducing the production of potato by 1 pound increases the production of corn by 1.5 pounds) what should the household do to maximize their profits? A: in crease the production of potato Bincrease the production of corn Cnothing, the household is already in the optimal production bundle Dwe can not determine it. we need more information