The slope of a budget line reflects the:
A. desirability of the two products.
B. price ratio of the two products.
C. amount of the consumer's income.
D. utility ratio of the two products.
Answer: B
Economics
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If a 50 cent increase in price causes the amount purchased to fall by 50 units per week, we know
A) almost nothing about the price elasticity of demand. B) demand is relatively elastic. C) demand is relatively inelastic. D) demand is unit elastic. E) the demand does not obey the law of demand.
Economics
Refer to the diagram. Flow 3 represents:
A. wage, rent, interest, and profit income.
B. land, labor, capital, and entrepreneurial ability.
C. goods and services.
D. consumer expenditures.
Economics