Refer to Figure 17-4. Which of the following is true at W0?
A) The substitution effect is larger than the income effect.
B) The income effect and the substitution effect are equal.
C) The income effect is larger than the substitution effect.
D) The supply curve is positively sloped.
A
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Human capital can be increased by more
a. robots aiding workers b. machinery produced with combinations of labor and capital c. workers' education and experience d. factories built to accommodate workers e. oil discovered that can be used to power the capital that workers use
Bundle J contains 10 units of good X and 5 units of good Y. Bundle K contains 5 units of good X and 10 units of good Y. Bundle L contains 10 units of good X and 10 units of good Y. Assume that the consumer's preferences satisfy the four properties of indifference curves. The price of X is $1, the price of Y is $2, and the consumer has an income of $20 . Which bundle will the consumer choose?
a. bundle J b. bundle K c. bundle L d. either bundle J or bundle K