Top Posters
Since Sunday
56
50
26
18
16
16
15
14
14
14
14
13
New Topic  
wrote...
Posts: 134
2 months 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 13 times
1 Reply
Replies
Answer verified by a subject expert
wrote...
Posts: 163
2 months 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
  262 People Browsing
Your Opinion

Previous poll results: Who's your favorite biologist?
Related Images
 438
 84
 26

▶️ Video: Coronary Heart Disease

For a complete list of videos, visit our video library