Consumer theory provides the foundation for understanding demand curves because

a. each point on a demand curve represents an optimal choice point.
b. consumers purchase more inferior goods than normal goods.
c. increases in income cause the budget constraint to rotate inward along one axis, which changes the consumer's purchases.
d. increases in income cause the budget constraint to rotate outward along one axis, which changes the consumer's purchases.

a

Economics

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The yield to maturity for a perpetuity is a useful approximation for the yield to maturity on long-term coupon bonds. It is called the ________ when approximating the yield for a coupon bond

A) current yield B) discount yield C) future yield D) star yield

Economics

If the price of capital declines, the consequent output effect would be:

A. greater, the more elastic the demand for the product. B. greater, the less elastic the demand for the product. C. negative. D. of consequence only if capital and labor are used in fixed proportions.

Economics