Question 10

0/ 1pts

Which plays the least amount of influence in price elasticity of demand?

The importance of a good or service

Time: Short-run vs. Long-run

The composition of buyers

The number if alternatives or substitutes

Question 11

0/ 1pts

If there is a change in price for goodX1fromP1toP1(1 + tax), then the _____________.

Point intercepting theX1-axis will shift out to the left

Point intercepting theX1-axis will shift out to the right

Entire budget line will shift to the left

Entire budget line will shift to the right

Question 12

0/ 1pts

If there is a change in income (Y) fromYtoY(1 - t), then _____________.

Entire budget line will shift to the right

Point intercepting theX1-axis will shift out to the left

Point intercepting theX1-axis will shift out to the right

Entire budget line will shift to the left

The _____________ is the rate of utility gained from an additional consumption of a good.

Marginal rate of substitution

Marginal utility

Trade-off

Law of diminishing marginal utility