Production of good y 20,16and good x20,22 what will be the. Mrt
Answers
Answer:Suppose that the prices of good x and good y both double, and income triples. On a graph
where the budget line is drawn with x on the horizontal axis and y on the vertical axis:
(a) the budget line becomes steeper and shifts inward.
(b) the budget line becomes atter and shifts outward.
(c) the budget line becomes atter and shifts inward.
(d) the new budget line is parallel to the old budget line and lies below it.
(e) None of the above.
Topic: Budget Constraint Diculty: 1
% Correct Responses: 96 Discrimination Index: 18
Correct Answer: D
2.17 Suppose that the price of good x triples and the price of good y doubles while income
remains constant. On a graph where the budget line is drawn with x on the horizontal axis and y
on the vertical axis, the new budget line:
(a) is atter than the old one and lies below it.
(b) is atter than the old one and lies above it.
(c) crosses the old budget line.
(d) is steeper than the old one and lies below it.
(e) is steeper than the old one and lies above it.
Topic: Budget Constraint Diculty: 3
% Correct Responses: 0 Discrimination Index: 0
Correct Answer: C
2.18 While traveling abroad, Tammy spent all of the money in her purse to buy 5 plates of
spaghetti and 6 oysters. Spaghetti costs 8 units of the local currency per plate and she had 82 units
of currency in her purse. If s denotes the number of plates of spaghetti and o denotes the number
of oysters purchased, the set of commodity bundles that she could just aord with the money in
her purse is described by the equation:
(a) 82 + 6o = 82.
(b) 6s + 8o = 82.
(c) 8s + 7o = 82.
(d) 5s + 6o = 82.
(e) There is not enough information to determine the answer.
Explanation: