1. Suppose someone's budget is $780, and it is fully spent on buying Product A. The price of this product is $26. Calculate the price change of Product A if there is a 1.3 times increase in the quantity available to purchase. Enter your answer in the box below, use a minus sign to show a decrease in price, and round to the nearest whole number if necessary. 2. Consider the spending choices of the following consumer: Emily's income is spent on colas and orange sodas, as well as other goods. She considers colas to be a normal good and orange sodas to be a normal good. What will happen to Emily's purchases of these goods if her income decreases? Select the best answer. She will buy more colas and fewer orange sodas. She will buy fewer colas and fewer orange sodas. She will buy more colas and more orange sodas. She will buy fewer colas and more orange sodas. Is the following statement true or false? Select the best answer. The price ratio of coffee to cookies is 1.5, so the marginal utility ratio of coffee to cookies must be 0.66. This statement is false. This statement is true.
1. Suppose someone's budget is $780, and it is fully spent on buying Product A. The
2.
Consider the spending choices of the following consumer:
Emily's income is spent on colas and orange sodas, as well as other goods. She considers colas to be a normal good and orange sodas to be a normal good.
What will happen to Emily's purchases of these goods if her income decreases? Select the best answer.
She will buy more colas and fewer orange sodas.
She will buy fewer colas and fewer orange sodas.
She will buy more colas and more orange sodas.
She will buy fewer colas and more orange sodas.
Is the following statement true or false? Select the best answer.
The price ratio of coffee to cookies is 1.5, so the
This statement is false.
This statement is true.
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