Refer to the figure at right. In the downward-sloping portion of the curve that connects points A, B, and D, the two goods, food and clothing, are O A. substitutes. O B. complements. O C. independent. O D. unrelated. Clothing (units per month) 6...A 4- U₂ B U3 12 20 Food (units per month)

The diagram shows Sam's budget line. Which of the following would result in Sam's budget line shifting leftward and not changing its slope?

1. Say that there are two goods in the world, books and video games. Say that we observed two of Jim's choices: he chooses bundle A from the budget set bounded by budget line 1, and the bundle B from the budget set bounded by budget line 2. video games B A budget line 2 budget line 1 books a) For each of the two goods, based on the diagram: is the good normal, inferior, or we can't say for sure? Is the good ordinary, Giffen, or we can't say for sure? Explain. b) For which of the two budget lines is the opportunity cost of a book higher and why? What does that statement mean in the context of this model?

. Matilda is downloading music and videos from an online site. She is currently buying three music downloads that cost $3 each and two video downloads that also cost $3 each. The table below indicates what she reports as the marginal utility of the last music download and of the last video download in this combination of purchases.      Quantity Price per Download MU per download Music downloads 3 $3 60 Video downloads 2 $3 45   As an assignment for her Microeconomics course, Matilda used the marginal utilities that she gave to her 3rd music download and her 2nd video download to complete the Experiment Tally Sheet below. Her available budget was $19.00.   Downloads of mu (score) from 1 to 100 Price of each $3.00  Money spent on  Downloads of  mu (score) from 1 to 100 Price of each $3.00 Money spent on  Total Money  Total Budget  music mu mu/$ music videos mu mu/$ videos Spent Remaining 1st ? ?…

The diagram shows Sam's budget line. Which of the following combinations of gasoline and coffee are available to Sam? 40 32 24 16 8 4 8. 12 16 20 24 Coffee (pounds per week) OA. 40 gallons of gasoline and 0 pounds of coffee. B. 32 gallons of gasoline and 4 pounds of coffee. OC. 8 gallons of gasoline and 8 pounds of coffee. OD. 16 gallons of gasoline and 16 pounds of coffee. OE. All combinations except (D) are available to Sam. Gasoline (gallons per week)