Question 10 What does it mean if Consumer B's indifference curve is higher than Consumer A's curve? 0 Consumer B has higher cost preferences 0 The More the Merrier 0 Consumer B has a PPC Curve 0 Consumer B is indifferent between Aand B Question 11 What is happening in this graph at e? Price Demand Schedule Law of Demand P Q $10.00 S $10.00 $7.50 00 UT W $5.00 $4.00 7 $7.50 $2.50 10 $0.00 15 Law of Supply $5.00 Supply Schedule P Q $4.00 $10.00 18 $7.50 15 D $5.00 13 $2.50 $4.00 8 $2.50 $0.00 0 $0.00 3 5 8 7 10 15 18 Qty P. Demand is increasing, price and demand are both falling. 1. Supply is increasing, price and demand are both rising. ".Supply and demand are at equilibrium or in balance at $8 and 5 units. ON.Supply and demand are at equilibrium or in balance at $5 and 8 units.Question 12 What is an indifference curve? 0The set of points on a curve where the consumers marginal utility per unit cost is the same. 0 MU1/P1 = MU/PZ 0The difference between a Budget and a PPC Curve. 0 Where the PPC curve meets the Budget. question 13 7 Wm What is happening in this graph? Price 0 Demand is falling, so prices are discounted by firms and fall, and firms make less supply of the goods as they cannot sell as much as before. 0 What goes up must come down. Newton's law. 0 Supply is falling, so prices are discounted by consumers and fall, and consumers make less supply of the goods as they cannot sell as much as before. 0This is the business cycle, with demand going up and down and firms follow the consumers over time. Question 14 What is happening in this graph Price '11 Q: Quantity '3"- Demand is increasing, price and demand are both falling. '3'\"- Supply is decreasing, price and demand are both rising. O\"'-Demand is increasing, price and demand are both rising. O'V-Supply is increasing, price and demand are both falling. Question 15 What is the point where producers goods available meet the consumers demand? The set of points where the producer possibilities curve of goods meets the consumers budget combination they can afford. MU1/P1 = MU/P2 The difference between a Budget and a PPC Curve. The set of points where the consumer indifference curve meets the consumers budget combination they can afford.Question 9 What are the 3 qualities of indifference curves? 1. The More the Better 2. Convex Shape 3. Downward Slope 1. MU1 2. MU2 3. MU3 1. The PPC Curve. 2. The Indifference Curve. 3. The Consumer Budget. 0 1. The More the Less 2. Complex Shape 3. Derivative Slope