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ECON-1010-A-Introduction to Microeconomics

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Three graphs plot good y versus good x. In graph 1, the horizontal axis is labeled good x, and the vertical axis is labeled good y. The horizontal axis ranges from 0 to 10 in increments of 2 units, and the vertical axis ranges from 0 to 10 in increments of 2 units. A graph displays two lines parallel to the vertical axis and two lines parallel to the horizontal axis. The first vertical line through (2, 8.8) and (2, 2). The second vertical line through (4, 8.7) and (4, 4). The first horizontal line through (2, 2) and (9, 2). The second horizontal line through (4, 4) and (9, 4). All values are estimated.In graph 2, the horizontal axis is labeled good x, and the vertical axis is labeled good y. The horizontal axis ranges from 0 to 10 in increments of 2 units, and the vertical axis ranges from 0 to 10 in increments of 2 units. A graph displays two concave up decreasing curves. The first curve through (1.7, 9.9) and (9.9, 1.8). The second curve through (3, 9.9) and (9.9, 2.8). All values are estimated. In graph 3, the horizontal axis is labeled good x, and the vertical axis is labeled good y. The horizontal axis ranges from 0 to 10 in increments of 2 units, and the vertical axis ranges from 0 to 10 in increments of 2 units. A graph displays two concave up decreasing curves. The first curve through (1.8, 9.8) and (7.3, 1.7). The second curve through (4.2, 10) and (10, 2). All values are estimated.

Figure 9.2.5

Refer to Figure 9.2.5, which shows indifference curves for various goods. What types of goods do the graphs describe?

Graph ________ best describes the pair of goods baseballs and baseball bats. Graph ________ best describes the pair of goods desktop computers and laptop computers.
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If the price of the good measured on the horizontal axis increases, how does the consumer's budget line change?
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A graph plots books versus C Ds. The horizontal axis is labeled C Ds, and the vertical axis is labeled books. The horizontal axis ranges from 0 to 10 in increments of 2 units, and the vertical axis ranges from 0 to 5 in increments of 1 unit. A graph is a line labeled B sub 1 falling through (0, 5), (6, 2), and (10, 0). Another line labeled B sub 0 falling through (0, 5), (2, 3), and (5, 0). A concave up decreasing curve labeled I sub 1 intersects B sub 1 at (6, 2). A concave up decreasing curve labeled I sub 0 intersects B sub 0 at (2, 3). Two horizontal and two vertical dashed lines through (0, 3) to (2, 3) at B sub 0 and (0, 2) to (6, 2) at B sub 1.

Figure 9.2.2 

Refer to Figure 9.2.2, which shows Otto's preferences when he spends all his income on books and CDs. If Otto chooses to buy 2 books and 6 CDs, what is his marginal rate of substitution between the two goods?
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In a usual week, Karl spends $20 to buy bagels and coffee. This week Karl has $25 to spend. Which of the following statements is correct?
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If the price of an inferior good falls, which of the following statements about the price effect is correct?
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Sam is spending his income on two goods and buys the quantities of the goods so that he achieves his best affordable combination of goods. If the price of one good falls, what is the substitution effect of the price fall?
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Sam buys gasoline and coffee each week. Which of the following variables does Sam need to be able to draw his budget line for gasoline and coffee?
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If the price of the good measured on the horizontal axis falls, the substitution effect of the price rise is indicated by which of the following events?
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In a usual week, Karl spends $20 to buy bagels and coffee. This week the price of a coffee rises by $0.50 a cup. Which of the following statements is correct?
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Larry consumes only beer (B) and chips (C). Which of the following equations is Larry's budget line with beer measured on the vertical axis?
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