If a consumer is at an optimum, consuming X and Y, and the price of Y decreases, then to get to a new equilibrium the consumer must
A) purchase less X.
B) purchase less Y.
C) purchase more X.
D) purchase more of both X and Y.
Answer: A
Economics
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Where the consumption function intersects the 45-degree line
A. saving will be zero. B. savings will be negative. C. consumption will equal only autonomous consumption. D. the average propensity to consume is 0.5.
Economics
Refer to the information provided in Figure 10.3 below to answer the question(s) that follow. 
Figure 10.3 Refer to Figure 10.3. The market wage is initially W0 and the firm is initially at Point A. Labor supply decreases from S0 to S1. After the firm is fully able to adjust all inputs, the firm will hire ________ units of labor to maximize profits.
A. I0 B. I1 C. I2 D. I3
Economics