Ask a Question
  
  
  
Top Posters
Since Sunday
13
12
12
11
11
10
10
10
10
10
10
10
New Topic  
wrote...
Posts: 59
2 weeks ago

Question 1.

The real-income effect of a price change is most significant when

• the substitution effect is insignificant.

• the marginal utility per dollar spent on the last unit is high.

• the substitution effect is significant too.

• the good under consideration constitutes a major portion of the consumer's budget.

Question 2.

If a consumer is initially at an optimum, and then the price of Y decreases, then

• MUX/MUY < PY/PX.

• MUX/PX > MUY/PY.

• MUX/PX < MUY/PY.

• MUX/PX = MUY/PY.
Source  Download
Economics Today: The Micro View
Edition: 19th
Author:
Read 6 times
1 Reply
Replies
Answer verified by a subject expert
wrote...
Posts: 55
Rep: 7 0
2 weeks ago
Sign in or Sign up in seconds to unlock everything.

Answer 1

the good under consideration constitutes a major portion of the consumer's budget.

Answer 2

MUX/PX < MUY/PY.
1
Related Topics
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers.
Learn More
Improve Grades
Help Others
Save Time
Accessible 24/7
  127 People Browsing
 110 Signed Up Today
Related Images
 843
 632
 23
Your Opinion
Who's your favorite biologist?
Votes: 30