A consumer has preferences over two goods: x and y. Three bundles, which all lie on the same indifference curve for this consumer, are shown in the following table.
Bundle
x
y
A
2
8
B
2
2
C
6
2
Which of the following statements regarding these bundles is correct?
The goods are perfect substitutes for this consumer.
The goods are perfect complements for this consumer.
These bundles violate the property that indifference curves are bowed inward.
These bundles violate the property that indifference curves do not cross.
A consumer has preferences over two goods: x and y. Three bundles, which all lie on the same indifference curve for this consumer, are shown in the following table.
| Bundle | x | y |
| A | 2 | 8 |
| B | 2 | 2 |
| C | 6 | 2 |
Which of the following statements regarding these bundles is correct?
| The goods are perfect substitutes for this consumer. | ||
| The goods are perfect complements for this consumer. | ||
| These bundles violate the property that indifference curves are bowed inward. | ||
| These bundles violate the property that indifference curves do not cross. |
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budget line
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market demand
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utility function
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1. |
_____ |
The satisfaction or benefit that consumers receive from consuming goods or services.
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2. |
________________ _ |
A particular combination of specific quantities of goods or services |
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3. |
________________ _ |
Consumers can rank all conceivable bundles of goods or services |
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4. |
_____ |
If A is preferred to B, and B is preferred to C, then A is always preferred to C. |
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5. |
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Equation showing a consumerâs perception of the total utility forthcoming from consuming each bundle of goods and services. |
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6. |
_____ |
A set of consumption bundles each and every one of which provides a consumer with exactly the same level of total utility. |
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7. |
_____ |
The number of units of Y that must be given up for total utility to remain the same when one more unit of X is consumed. |
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8. |
_____ |
The addition to total utility attributable to consuming one more unit of a good, holding the consumption of all other goods constant. |
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9. |
_____ |
The line showing all bundles of goods that can be purchased at given prices if the entire income is spent. |
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10. |
_____ |
The change in the consumption of a good that would result if the consumer remained on the original indifference curve after the price of the good changes. |
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11. |
_____ |
The change in consumption of goods results strictly from the change in purchasing power after the price of a good changes. |
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12. |
________________ _ |
The sum of the substitution and income effects. |
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13. |
_____ |
A good for which quantity demanded varies directly with price, causing an upward sloping demand curve. |
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14. |
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A list of prices and the corresponding quantity consumers are willing and able to purchase at each price. |
