Exam 8:Slutsky Equation-Part B

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Suppose that Agatha in Problem 10 had $440 to spend on tickets for her trip.She needs to travel a total of 1,500 miles.Suppose that the price of first-class tickets is $.40 per mile and the price of second-class tickets is $.20 per mile.How many miles will she travel by second class?

(Multiple Choice)

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Question 21

Goods 1 and 2 are perfect complements,and a consumer always consumes them in the ratio of 2 units of good 2 per unit of good 1.If a consumer has an income of $420 and if the price of good 2 changes from $6 to $7,while the price of good 1 stays at $1,then the income effect of the price change

(Multiple Choice)

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Question 22

In Problem 1,Charlie's utility function is x_Ax_B.The price of apples used to be $1 per unit,and the price of bananas $2 per unit.His income was $40 per day.If the price of apples increased to $1.50 and the price of bananas fell to $.75,then in order to be able to just afford his old bundle,Charlie would have to have a daily income of

(Multiple Choice)

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Question 23

In Problem 1,Charlie's utility function is x_Ax_B.The price of apples used to be $1,the price of bananas used to be $2,and his income used to be $40.If the price of apples increased to $5 and the price of bananas stayed constant,the substitution effect on Charlie's apple consumption would reduce his consumption by

(Multiple Choice)

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Question 24

In Problem 1,Charlie's utility function is x_Ax_B.The price of apples used to be $1,the price of bananas used to be $2,and his income used to be $40.If the price of apples increased to $6 and the price of bananas stayed constant,the substitution effect on Charlie's apple consumption would reduce his consumption by

(Multiple Choice)

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Question 25

In Problem 4,Maude thinks delphiniums and hollyhocks are perfect substitutes,one for one.If delphiniums currently cost $4 per unit and hollyhocks cost $5 per unit and if the price of delphiniums rises to $9 per unit,

(Multiple Choice)

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Question 26

In Problem 4,Maude thinks delphiniums and hollyhocks are perfect substitutes,one for one.If delphiniums currently cost $2 per unit and hollyhocks cost $3 per unit and if the price of delphiniums rises to $5 per unit,

(Multiple Choice)

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Question 27

In Problem 1,Charlie's utility function is x_Ax_B.The price of apples used to be $1 per unit,and the price of bananas $2 per unit.His income was $40 per day.If the price of apples increased to $1.50 and the price of bananas fell to $1,then in order to be able to just afford his old bundle,Charlie would have to have a daily income of

(Multiple Choice)

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Question 28

In Problem 1,Charlie's utility function is x_Ax_B.The price of apples used to be $1 per unit,and the price of bananas $2 per unit.His income was $40 per day.If the price of apples increased to $2.25 and the price of bananas fell to $1.75,then in order to be able to just afford his old bundle,Charlie would have to have a daily income of

(Multiple Choice)

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Question 29

Neville,in Problem 2,has a friend named Algernon.Algernon has the same demand function for claret as Neville,namely q = .02m - 2p,where m is income and p is price.Algernon's income is $5,500 and he initially had to pay a price of $20 per bottle of claret.The price of claret rose to $50.The substitution effect of the price change

(Multiple Choice)

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Question 30

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Exam 8:Slutsky Equation-Part B

Suppose that Agatha in Problem 10 had $440 to spend on tickets for her trip.She needs to travel a total of 1,500 miles.Suppose that the price of first-class tickets is $.40 per mile and the price of second-class tickets is $.20 per mile.How many miles will she travel by second class?

Goods 1 and 2 are perfect complements,and a consumer always consumes them in the ratio of 2 units of good 2 per unit of good 1.If a consumer has an income of $420 and if the price of good 2 changes from $6 to $7,while the price of good 1 stays at $1,then the income effect of the price change

In Problem 4,Maude thinks delphiniums and hollyhocks are perfect substitutes,one for one.If delphiniums currently cost $4 per unit and hollyhocks cost $5 per unit and if the price of delphiniums rises to $9 per unit,

In Problem 4,Maude thinks delphiniums and hollyhocks are perfect substitutes,one for one.If delphiniums currently cost $2 per unit and hollyhocks cost $3 per unit and if the price of delphiniums rises to $5 per unit,

Demand-Part A

Revealed Preference-Part A

Revealed Preference-Part B

Slutsky Equation-Part A

Buying and Selling-Part A

Buying and Selling-Part B

Intertemporal Choice-Part A

Intertemporal Choice-Part B

Asset Markets-Part A

Asset Markets-Part B

Uncertainty-Part A

Uncertainty-Part B

Risky Assets-Part A

Risky Assets-Part B

Consumers Surplus-Part A

Consumers Surplus-Part B

Market Demand-Part A

Market Demand-Part B

Equilibrium-Part A

Equilibrium-Part B

Auctions-Part A

Auctions-Part B

Technology-Part A

Technology-Part B

Profit Maximization-Part A

Profit Maximization-Part B

Cost Minimization-Part A

Cost Minimization-Part B

Cost Curves-Part A

Cost Curves-Part B

Firm Supply-Part A

Firm Supply-Part B

Industry Supply-Part A

Industry Supply-Part B

Monopoly-Part A

Monopoly-Part B

Monopoly Behavior-Part A

Monopoly Behavior-Part B

Factor Markets-Part A

Factor Markets-Part B

Oligopoly-Part A

Oligopoly-Part B

Game Theory-Part A

Game Theory-Part B

Game Applications-Part A

Game Applications-Part B

Behavioral Economics-Part A

Exchange-Part A

Exchange-Part B

Production-Part A

Production-Part B

Welfare-Part A

Welfare-Part B

Externalities-Part A

Externalities-Part B

Information Technology-Part A

Information Technology-Part B

Public Goods-Part A

Public Goods-Part B

Asymmetric Information-Part A

Asymmetric Information-Part B

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