A change in the slope of a budget constraint indicates:
A) a change in the price of either good that causes a change in the opportunity cost.
B) a change in the consumer's income.
C) a change in the price of either good without a change in the opportunity cost.
D) a change in the consumer's tastes and preferences.
A
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If a consumer purchases only two goods (X and Y ) and the demand for X is elastic, then a rise in the price of X
a. will cause total spending on good Y to rise. b. will cause total spending on good Y to fall. c. will cause total spending on good Y to remain unchanged. d. will have an indeterminate effect on total spending on good Y.
Which of the following describes the difference between the market demand curve for a perfectly competitive industry and the demand curve for a firm in this industry?
A) The market demand curve is a horizontal line; the firm's demand curve is downward sloping. B) The market demand curve is downward sloping; the firm's demand curve is a vertical line. C) The market demand curve can not have a constant slope; the firm's demand curve has a slope equal to zero. D) The market demand curve is downward sloping; the firm's demand curve is a horizontal line.