5 4 BC 2 3 BC 1 B 2 1 2 3 5 IC 2 IC 1 Refer to the Figure. Assume the consumer depicted in the figure faces prices and income such that she optimizes at point B. According to the graph, which of the following would cause the consumer to move to point A? An decrease in the price of good X

KAMVA 489 Time Remaining: 02:54:13 Hide Time Remaining A Suppose the weighted marginal utility for two goods, x and y, at a position of consumer equilibrium is 70. If the price of good x is R10 and the relevant marginal utility for y is 140, what is the price of good y and the relevant marginal utility for good x? A. The price of y = R70; the marginal utility for x = 70 %3D B. The price of y = R2; the marginal utility for x = 700 C. The price of y = R10; the marginal utility for x = 700 D. The price of y = R2; the marginal utility for x = 140 E. The price of y = R140; the marginal utility for x = 70 Reset Selection |54 II

Can you help me answer this macroeconomics theory question

For normal goodsA) the substitution effect of a price decrease will decrease the quantity of the good demanded while theincome effect of a price decrease will increase the quantity of the good demanded.B) the substitution and income effects of a price decrease will both increase the quantity of the gooddemanded.C) the substitution and income effects of a price decrease will both decrease the quantity of the gooddemanded.D) the substitution effect of a price decrease will increase the quantity of the good demanded while theincome effect of a price decrease will decrease the quantity of the good demanded.

Why does a change in income cause a parallel shift in the budget constraint?

Recent research confirms that the demand for cigarettes is not only inelastic, but it also indicates that smokers with incomes in the lower half of all incomes respond to a given price increase by reducing their purchases by amounts that are more than four times as large as the purchase reductions made by smokers in the upper half of all incomes. How can the income and substitution effects of a price change help explain this finding?

. If average income increases, ceteris paribus, then there will be: A) a shift of the demand curve B) a movement along and a shift in the demand curve c) a movement along the demand curve D) no effect on the demand curve, because income is not a ceteris paribus condition

Please explain in detail, in relation to microe

Not sure where to plot market demand

Problem 6 Consider the following diagram that shows the effects of a decrease in the price of beer on a consumer's choice of consumption of beer and pretzels: Ber 19 17 ICI Pretzds a.) What is the value of the income effect on beer consumption of the price change? b.) Are beer and pretzels complements or substitutes?