What is induced spending? Select one: A. The portion of total spending that is dependent of the level of income. B. The portion of total spending that is independent of the level of income. C. The portion of income that is dependent on the level of spending. * D. The level of spending which varies with the level of prices.
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- Explain the impact of the change in consumer's income on the demand of goods and services.betsy graduates from college and her income increases by $40,000. nothing else changes. betsy decreases the quantity of T-shirts and potato chips that she buys and increases the quantity of hot caramel cider that she buys. for betsy,Which of the following is true regarding income along a price-consumption curve? A. Income is increasing. B. Income is decreasing. C. Income is constant. D. The level of income depends on the level of utility.
- Rice is considered to be the staple food in the Philippines, so that when its price escalates, spending of the consumer will Select one: a. Decrease b. increase c. decrease rapidly d. increase rapidlyCreate a speech about the relationship of income, saving and consumption to price changes in shopping.8. If cookies are a normal good and incomes increase, we would expect: Select one:
- I bought 10 apples and 5 oranges last year. I can still afford this consumption bundle this year. Which of the following cannot be true? a. Prices doubled and my income also doubled b. Prices and income remain unchanged c. Price of apples increased, the price of oranges decreased and my income remained unchanged d. Price of apples and oranges increased and my income remained unchangedWhich one of the following is NOT a possible relationship between income and spending Select one: a. Income equals the level of spending b. Spending is higher than income c. None is a relationship d. Income is higher than spendingNOTE: THIS IS FOR A NON-GRADED QUIZ. Louis has stable preferences and consumes two goods, wine and cheese. In 1994, the price of wine was $4/glass and the price of cheese was $2/ounce. Louis's income was $60 and he bought 12 glasses of wine and 6 ounces of cheese. In 1995, wine costs $2/glass and cheese costs $4/ounce. Louis's income is still $60. a. Draw both years' budget lines. Where do they cross? b. What is Louis's marginal rate of substitution of wine for cheese in 1994? [hint: you can't use calculus]
- Marie-Louise has an income of $10 to buy peanuts and popcorn. The price of a bag of peanuts is $1 and the price of a bag of popcorn is $2. What is Marie-Louise's real income in terms of popcorn? Select one: A. 1/2 bag of popcorn B. 5 bags of popcorn C. $2 per bag of popcorn D. 2 bags of popcorn E. 10 bags of popcornIf the consumer income is OR 928, price of good (X) is OR 58.6 and the price of good (Y) is OR 14, what is the quantity of good (Y) purchased by the consumer if he is only purchasing good (Y). a. 0.02 b. 66.29 c. 0.06 d. 15.84Economics Picabo, an aggressive skier, spends her entire income on skis and bindings. Suppose Picabo has $8,400 to spend on skis and bindings each year. Find her best affordable bundle of skis and bindings on the basis that (a) she wears out one pair of skis for every pair of bindings she wears out, and (b) she wears out two pairs of skis for every one pair of bindings. Skis are $800/pr and bindings are $400/pr. a. pairs of bindings Instructions: Round your answer to 1 decimal place. b. pairs of bindings - and pairs of skis ----- -- - -- - and pairs of skis - - - - - -