Assume X and Y are the only two goods a person consumes. If after a rise in the quantity demanded of Y increases, one could say
a. the income effect dominates the substitution effect for Y.
b. the substitution effect dominates the income effect for Y.
c. it is impossible to determine whether the substitution or income effect dominates for Y.
d. None of the above.
b
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A Phillips Curve that has a negative slope is consistent with
A) a constant price level. B) constant velocity. C) an upward sloping aggregate supply curve. D) a vertical aggregate supply curve.
In a supply-and-demand graph, producer surplus can be pictured as the
A) vertical intercept of the supply curve. B) area between the demand curve and the supply curve to the left of equilibrium output. C) area under the supply curve to the left of equilibrium output. D) area under the demand curve to the left of equilibrium output. E) area between the equilibrium price line and the supply curve to the left of equilibrium output.