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ECON-1010-D1/D2-Introduction to Microeconomics

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Use the information below to answer the following questions.

Fact 9.3.2 Hamptons Glamour Finds a Humbler Home

Lucy Martin collected and sold vintage clothing in the wealthy Hamptons, but in the recession of 2008, her sales fell. She eventually moved her shop to Tannersville, N.Y., where her expenses are 70 percent less than they were in the Hamptons.

Source: The New York Times, December 22, 2016

Refer to Fact 9.3.2. According to the news clip, vintage clothing is ________ good. If the price of vintage clothing falls and income remains the same, the quantity of used clothing bought ________.
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The marginal rate of substitution of X

for

Y at point A is  .

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Use the figure below to answer the following questions.

Figure 9.3.3

Consider an initial budget line labelled RT in Figure 9.3.3. If the budget line becomes RS, the substitution effect is illustrated by the move from point
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Use the figure below to answer the following questions.

Figure 9.2.3

Refer to Figure 9.2.3. When Rashid chooses the consumption point of 2 books and 6 CDs, his marginal rate of substitution is
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Use the table below to answer the following questions.

Windsurfing equipment rents for $10 per hour and snorkeling equipment rents for $5 per hour.

Table 8.3.1

Consider Devon's utility from snorkeling and windsurfing in Table 8.3.1. Devon has $55 to spend. What are Devon's choices for time spent on the two activities?
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Use the table below to answer the following questions.

Table 8.1.1

Refer to Table 8.1.1. The value of B is
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Use the table below to answer the following questions.

Table 8.2.1

Refer to Table 8.2.1. Consider Sam's utility from sailing and skiing. The price of sailing is $10 per hour and the price of skiing is $20 per hour; Sam's income to spend on these activities is $80. In consumer equilibrium, Sam will sail for
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Use the table below to answer the following question.

Table 8.2.4

Units of XTotal Utility (X)Units of YTotal Utility (Y)
0000
19149
217290
3243110
4304118
5355124
6396129
7427132
8448133

Refer to Table 8.2.4. Suppose the price of X is $1 and the price of Y is $1. How much of each should you purchase to maximize utility from a total expenditure of $11?
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A fall in the price of widgets leads consumers to buy more widgets. What can we conclude from this information?
0%
0%
0%
100%
0%
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Which of the following assumptions is (are) NOT made in consumer behavior theory?
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