Richard's indifference curve for two goods (bread and butter) is L-shaped, whereas Kate's indifference curve for the same two goods is convex. We can infer that _____
a. Kate considers bread and butter to be perfect substitutes
b. Kate considers bread and butter to be perfect complements
c. Richard considers bread and butter to be perfect substitutes
d. Richard considers bread and butter to be perfect complements
d
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If the price of a good increases, ________
A) the budget constraint shifts to the right B) the budget constraint shifts to the left C) the consumer surplus increases D) the consumer surplus decreases
If a nation's Lorenz curve lies on the line of income equality
A. proportionately more of the nation's income is received by the lowest 20% of families than the highest 20%. B. income is unequally distributed. C. proportionately more of the nation's income is received by the highest 20% of families than the lowest 20%. D. the income received by each 20% of families is 20% of the total income.