Top Posters
Since Sunday
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
r
4
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
billyhilly billyhilly
wrote...
Go to Answer
Posts: 479
Rep: 11 0
4 years ago

Question 1.

The limitation that a consumer's total expenditure on goods and services purchased cannot exceed the income available is referred to as



▸

the budget constraint.



▸

the price constraint.



▸

economizing behavior.



▸

maximizing behavior.



Question 2.

Which of the following correctly describes the result of a price increase for an inferior good?



▸

The substitution effect causes the demand for the good to decrease; the income effect causes the demand for the good to increase.



▸

Both the substitution effect and the income effect cause the consumer to buy less of the good.



▸

The substitution effect causes the consumer to buy less of the good and the income effect causes the consumer to buy more of the good.



▸

The substitution effect causes the demand for the good to increase; the income effect causes the demand for the good to decrease.

Textbook 
InMicro

InMicro


Edition: 1st
Authors:
Read 77 times
1 Reply
Replies
Answer verified by a subject expert
anuja709anuja709
wrote...
#1
Posts: 375
Rep: 64 0
4 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

billyhilly Author
wrote...

4 years ago
This site is awesome
Mkersey12
wrote...

Yesterday
Good timing, thanks!
kiara23247843
wrote...

2 hours ago
Helped a lot
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1249 People Browsing
 119 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 849
  
 213
  
 303
Your Opinion
Do you believe in global warming?
Votes: 370
Previous poll results: Which country would you like to visit for its food?