The Quantity demanded for product X last month is 40 units when the income is 300 pesos per day. Currently the income increased by 50 which resulted to an increase in the quantity demanded to 50 units. Product X is a * Complement Substitute O Normal Good O Inferior Good Indifference curves are convex, or bowed toward the origin, because * O a. each indifference curve represents a constant, but different level of utility. b. of diminishing marginal utility: the O consumption of an additional unit of a good generates a smaller increase in total utility than the previous unit consumed. O c. they are not allowed to intersect one another. O d. they are downward sloping.In the indifference curve/budget line diagram, consumers reach higher indifference curves when * O a. their budget decreases. O b. the price of only the good measured along the y-axis increases. O c. the price of either good falls. O d. the price of either good rises. Lea's income each month is $500 and Lea purchases only two types of goods: food and clothing.Each unit of food (F) costs $10 per unit and each unit of clothing (C) costs $20 per unit. Which of the following equations expresses Lea's budget line? * a. $500 = $10/F + $20/C b. F = 50 - 2C C. F = 500 - 2C d. C = 25 - (1/2)F O e. Answers (b) and (d) are both correct.Statement 1 Two indifference curves cannot cut each other because each indifference curve represents a different level of satisfaction Statement 2 An indifference curve is related to choices and preferences of consumer * O Both are true O Both are false O False, True O True, False Suppose that Dina gets 40 units of utility when he consumes 2 hot dogs and 3 sodas and he gets40 units of utility when he consumes 3 hot dogs and 1 soda. Then, * a. Bob must like hot dogs more than soda. b. Bob must like soda more than hot dogs. c. these two combinations of hot dogs and O soda must lie on the same indifference curve. O d. these two combinations of hot dogs and soda must lie on the same budget line.Statement 1 An Indifference curve slope down towards right since more of one commodity and less of another result in same satisfaction Statement 2 Moving along an indifference curve the consumers do not prefer one consumption point to another. * O Both are true O Both are false O False, True O True, False The Quantity demanded for product X last month is 20 units when the Price of product y is 100 pesos per day. Currently the price of product y increased by 50 which resulted to an increase in the quantity demanded to 50 units. Product X is a * Complement O Substitute Normal Good O Inferior GoodThe indifference curve is convex to origin. State the reason: * O Due to continuous decline of marginal rate of substitution O Due to law of diminishing marginal utility O Due to monotonic preferences All of the above All of the following pertains to indifference curve EXCEPT * O Higher the indifference curves, higher is the level of satisfaction. O Indifference curve is downward sloping. Indifference curve is concave to origin. O Two indifference curves cannot intersect each other