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ECON-1010-A-Introduction to Microeconomics

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Leah consumes at a point on her budget line where her marginal rate of substitution between the two goods is less than the magnitude of the slope of her budget line. How does Leah move toward her best affordable point?

She will move to
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A graph plots music downloads (per month) versus carrots (per month).The horizontal axis is labeled music downloads (per month), and the vertical axis is labeled carrots (per month). A graph displays three downward sloping lines. The first line falls from the top left in the vertical axis at point D to the bottom left in the horizontal axis at point A. The second line falls from point D to the bottom center in the horizontal axis at point B. The third line falls from point D to extreme right in the horizontal axis at point C.

Figure 9.1.2

Refer to Figure 9.1.2, which shows three budget lines. Which budget line shows the greatest real income in terms of music downloads?
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Which of the following statements about the slope of a consumer's budget line is correct?
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Larry consumes only beer (B) and chips (C). If beer is measured on the vertical axis, which of the following situations is not equal to the relative price of chips in terms of beer?
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A graph plots good y versus good x. The horizontal axis is labeled good x, and the vertical axis is labeled good y. A graph displays two falling lines from top left in the vertical axis at R to bottom center at T and extreme right at S. A concave up decreasing curve has two points A and B intersecting the line R S at A. A concave up decreasing curve C and D intersecting the line R T at C. A dashed line from top left to bottom right intersects at B. A dashed line from the top left in the vertical axis to the bottom right in the horizontal axis intersects at D.

Figure 9.3.4

Refer to Figure 9.3.4, which shows a consumer's choices and the consumer's budget. If the budget line is RT, what change will shift the budget line to RS?
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Which of the following statements about the substitution effect of a price change is always correct? 
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A graph plots music downloads (per month) versus carrots (per month).The horizontal axis is labeled music downloads (per month), and the vertical axis is labeled carrots (per month). A graph displays three downward sloping lines. The first line falls from the top left in the vertical axis at point D to the bottom left in the horizontal axis at point A. The second line falls from point D to the bottom center in the horizontal axis at point B. The third line falls from point D to extreme right in the horizontal axis at point C.

Figure 9.1.2

Refer to Figure 9.1.2, which shows three budget lines. Which budget line shows the greatest real income in terms of carrots?
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What is the magnitude of the slope of an indifference curve called?
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Guy has an income (Y) of $50 with which he can purchase movie tickets (M) at $10 each and haircuts (H) at $20 each. Which one of the following represents Guy's budget line? 
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Which of the following statements is false? 
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