Select one:

a.

The income effect of normal goods counters the substitution effect so the demand curve is upsloping.

b.

The income effect and the substitution effect reinforce each other when there are price changes for a normal good.

c.

The income effect represents the decrease in quantity demanded caused by the implicit change in income due to a fall in the price of an inferior good but not for a normal good.

d.

The substitution effect represents the change in quantity demanded solely due to a change in the relative price of a good.

For a/an _______ good, an increase in income will lead to an increase in _______ .

Select one:

a.

inferior; consumption

b.

normal; supply

c.

normal; consumption

d.

inferior; supply

Assume that the total utilities for the fifth and sixth units of a good consumed are 83 and 97, respectively. The marginal utility for the sixth unit is:

Select one:

a.

-14.

b.

14.

c.

83.

d.

97.

Exhibit: Consumer Equilbrium 1 Units of Marginal Utility Units of Marginal Utility Good X of Good X Good Y of Good Y 20 12 16 10 12