Assignment s True/False 1. The consumer\'s level of well-being is constant along

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Assignment s True/False 1. The consumer's level of well-being is constant along a demand curve but varies with shifs in the demand curve 2. At each point on a demand curve, the consumer's equilibrium condition is satisfied. 4. The prices and the quantities of other goods are held constant along a demand curve. 5. The substitution effect of a normal good is in the same direction as the substitution effect of an inferior good 6. The income effecet of a normal good is in the same direction as the income effect of an inferio good 7. The demand curve of a normal good must be downward sloping. 8. A Giffen good is an inferior good for which the income effect is larger than the substitution effect. 9. It is more likely that an individual consumer has an upward-sloping demand curve than fo market demand curve to be upward sloping. 11. The price of a commodity is a good measure of the consumer surplus received from it. 12. For a downward sloping demand curve, the lower the price, the greater is the consumer surp 13. An upward-sloping price-consumption curve indicates the good is inferior. 14. A consumer's demand for a good is never influenced by the purchases of other consumers. Multiple Choice The curve EF in Figure 4-2 is called a(n) a. price-consumption curve. b. income-consumption curve. c. demand curve. d. elasticity curve 1. From the curve EF in Figure 4-2, we know that the demand for coffee is a. elastic at high prices and inelastic at low prices. b. inelastic at high prices and elastic at low prices. c. elastic everywhere. d. unit elastic everywhere. 2.

Explanation / Answer

1. It is true that the consumer’s level of well being is constant along a demand curve but varies with shifts in the demand curve.

2. It is false that at each point on a demand curve, the consumer’s equilibrium condition is satisfied.

4. It is true that the prices and the quantities of other goods are held constant along the demand curve.

5. It is true that the substitution effect of a normal good is in the same direction as the substitution effect of an inferior good.

For rest upload them in a batch of 4 questions.

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