Question 1

Refer to the information provided in Figure 6.6 below to answer the question(s) that follow.  Figure 6.6
-Refer to Figure 6.6. Bill's budget constraint is BD. Bill's income is $600, the price of a bell pepper is $1, and the price of a bag of black beans is $2. At point D Bill is buying ________ bell peppers and ________ bags of black beans.

Accepted Answer

Bill's budget constraint allows him to spend $600. At point D, if he buys 0 bell peppers, he can buy 300 bags of black beans at $2 each.

Question 2

Refer to the information provided in Figure 6.6 below to answer the question(s) that follow.  Figure 6.6
-Refer to Figure 6.6. Bill's budget constraint was originally EF. If his new budget constraint is CD, then his income

Accepted Answer

A shift from EF to CD in a budget constraint typically indicates a decrease in income, assuming prices remain constant.

Question 3

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow.  Figure 6.5
-Refer to Figure 6.5. Molly's budget constraint is BD. Molly's income is $375, the price of a DVD is $15 and the price of a CD is $25. At point D she is buying ________ DVDs and ________ CDs.

Accepted Answer

At point D, Molly spends all her income on DVDs. With a price of $15 per DVD, she can buy 25 DVDs ($375/$15 = 25) and 0 CDs.

Question 4

Refer to the information provided in Figure 6.6 below to answer the question(s) that follow.  Figure 6.6
-Refer to Figure 6.6. Bill's budget constraint is BD. Bill's income is $800, the price of a bell pepper is $1, and the price of a bag of black beans is $1. At point B Bill is buying ________ bell peppers and ________ bags of black beans.

Accepted Answer

At point B, Bill spends all his income on bell peppers and none on black beans, hence he buys 800 bell peppers (since each costs $1 and he has $800) and 0 bags of black beans.

Question 5

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow.  Figure 6.5
-Refer to Figure 6.5. Molly's budget constraint is CD. If the price of CDs increases, her new budget constraint becomes

Accepted Answer

The price of CDs increases, so Molly can buy fewer CDs at the same price. Her new budget constraint becomes AD, which is closer to the origin than CD.

Question 6

Michael can buy either pizzas or submarine sandwiches. If the prices of pizzas and submarine sandwiches fall by half and so does Michael's money income, we can conclude that Michael's budget constraint will

Accepted Answer

When both the prices of goods (pizzas and submarine sandwiches) and Michael's income fall by half, the relative prices of the goods and the relative income remain the same. This means Michael can still afford the same combinations of pizzas and submarine sandwiches as before, leaving the budget constraint unchanged.

Question 7

Michael can buy either pizzas or submarine sandwiches. If the prices of pizzas and submarine sandwiches double and Michael's money income triples, we can conclude that Michael's budget constraint will

Accepted Answer

When the prices of goods double and income triples, the budget constraint shifts outward because Michael can now buy more of both goods than before, even though the prices have increased. The budget line remains parallel because the relative price of pizzas to submarine sandwiches remains the same.

Question 8

Refer to the information provided in Figure 6.6 below to answer the question(s) that follow.  Figure 6.6
-Refer to Figure 6.6. Bill's budget constraint was originally CD. If his new budget constraint is EF, then his income

Accepted Answer

When a budget constraint shifts outward from CD to EF, it indicates that the consumer's income has increased, allowing them to afford more of both goods.

Question 9

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow.  Figure 6.5
-Refer to Figure 6.5. Molly's budget constraint is BD. Molly's income is $400, the price of a DVD is $15 and the price of a CD is $20. At point B she is buying ________ DVDs and ________ CDs.

Accepted Answer

At point B, Molly spends all her income on CDs. With a price of $20 per CD, she can buy 20 CDs ($400/$20 = 20) and 0 DVDs.

Question 10

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow.  Figure 6.5
-Refer to Figure 6.5. Molly's budget constraint is CD. Molly's income is $200, the price of a DVD is $7.50 and the price of a CD is $10. At point C, she is buying ________ DVDs and ________ CDs.

Accepted Answer

At point C, Molly spends all her income on CDs. With a price of $10 per CD, she can buy 20 CDs ($200/$10 = 20).

Question 11

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow.  Figure 6.5
-Refer to Figure 6.5. Molly's budget constraint is CD. Molly's income is $75, the price of a DVD is $3 and the price of a CD is $5. At point D, she is buying ________ DVDs and ________ CDs.

Accepted Answer

At point D, Molly is at the extreme end of her budget constraint where she spends all her income on DVDs and none on CDs. Given her income is $75 and the price of a DVD is $3, she can buy $75/$3 = 25 DVDs.

Question 12

Refer to the information provided in Figure 6.6 below to answer the question(s) that follow.  Figure 6.6
-Refer to Figure 6.6. Bill's budget constraint is CD. If the price of bell peppers increases, Bill's new budget constraint is

Accepted Answer

The answer of Refer to the information provided in Figure...

Question 13

Refer to the information provided in Figure 6.6 below to answer the question(s) that follow.  Figure 6.6
-Refer to Figure 6.6. Bill's budget constraint was originally AD. If his new budget constraint is EF, then his income

Accepted Answer

The answer of Refer to the information provided in Figure...

Question 14

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow.  Figure 6.5
-Refer to Figure 6.5. Molly's budget constraint is AD. If the price of CDs decreases, her new budget constraint becomes

Accepted Answer

The answer of Refer to the information provided in Figure...

Question 15

Refer to the information provided in Figure 6.6 below to answer the question(s) that follow.  Figure 6.6
-Refer to Figure 6.6. Bill's budget constraint was originally EF. If his new budget constraint is AD, then his income

Accepted Answer

The answer of Refer to the information provided in Figure...

Question 16

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow.  Figure 6.5
-Refer to Figure 6.5. Molly's budget constraint is EF. If her income decreases while the price of the goods are unchanged, her new budget constraint could be

Accepted Answer

When income decreases while prices remain constant, the budget constraint shifts inward, parallel to the original budget line. This means Molly can afford less of both goods, which is represented by line CD, closer to the origin than EF.

Question 17

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow.  Figure 6.5
-Refer to Figure 6.5. Molly's budget constraint is AD. If her income decreases, her new budget constraint is

Accepted Answer

When an individual's income decreases, their budget constraint shifts inward, indicating they can afford less of both goods. Since Figure 6.5 is not provided, we cannot see the specific positions of lines CD, BD, or EF. However, the correct answer must reflect a shift inward from the original budget constraint AD, and without seeing the graph, the only definitive answer is that the new budget constraint after a decrease in income is not shown.

Question 18

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow.  Figure 6.5
-Refer to Figure 6.5. Molly's budget constraint is EF. If her income decreases and the price of CDs increases, her new budget constraint could be

Accepted Answer

A decrease in income and an increase in the price of CDs would both reduce Molly's purchasing power, shifting her budget constraint inward. Both BD and AD represent inward shifts from EF, indicating reduced purchasing power for CDs and possibly other goods, consistent with the changes described.

Question 19

Refer to the information provided in Figure 6.6 below to answer the question(s) that follow.  Figure 6.6
-Refer to Figure 6.6. Bill's budget constraint is BD. If the price of bell peppers increases, Bill's new budget constraint is

Accepted Answer

The answer of Refer to the information provided in Figure...

Question 20

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow.  Figure 6.5
-Refer to Figure 6.5. Molly's budget constraint is EF. If her income decreases while the price of the goods are unchanged, her new budget constraint is

Accepted Answer

The answer of Refer to the information provided in Figure...

Quiz 6: Household Behavior and Consumer Choice

Refer to the information provided in Figure 6.6 below to answer the question(s) that follow. Figure 6.6 -Refer to Figure 6.6. Bill's budget constraint was originally EF. If his new budget constraint is CD, then his income

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow. Figure 6.5 -Refer to Figure 6.5. Molly's budget constraint is BD. Molly's income is $375, the price of a DVD is $15 and the price of a CD is $25. At point D she is buying DVDs and CDs.

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow. Figure 6.5 -Refer to Figure 6.5. Molly's budget constraint is CD. If the price of CDs increases, her new budget constraint becomes

Michael can buy either pizzas or submarine sandwiches. If the prices of pizzas and submarine sandwiches fall by half and so does Michael's money income, we can conclude that Michael's budget constraint will

Michael can buy either pizzas or submarine sandwiches. If the prices of pizzas and submarine sandwiches double and Michael's money income triples, we can conclude that Michael's budget constraint will

Refer to the information provided in Figure 6.6 below to answer the question(s) that follow. Figure 6.6 -Refer to Figure 6.6. Bill's budget constraint was originally CD. If his new budget constraint is EF, then his income

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow. Figure 6.5 -Refer to Figure 6.5. Molly's budget constraint is BD. Molly's income is $400, the price of a DVD is $15 and the price of a CD is $20. At point B she is buying DVDs and CDs.

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow. Figure 6.5 -Refer to Figure 6.5. Molly's budget constraint is CD. Molly's income is $200, the price of a DVD is $7.50 and the price of a CD is $10. At point C, she is buying DVDs and CDs.

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow. Figure 6.5 -Refer to Figure 6.5. Molly's budget constraint is CD. Molly's income is $75, the price of a DVD is $3 and the price of a CD is $5. At point D, she is buying DVDs and CDs.

Refer to the information provided in Figure 6.6 below to answer the question(s) that follow. Figure 6.6 -Refer to Figure 6.6. Bill's budget constraint is CD. If the price of bell peppers increases, Bill's new budget constraint is

Refer to the information provided in Figure 6.6 below to answer the question(s) that follow. Figure 6.6 -Refer to Figure 6.6. Bill's budget constraint was originally AD. If his new budget constraint is EF, then his income

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow. Figure 6.5 -Refer to Figure 6.5. Molly's budget constraint is AD. If the price of CDs decreases, her new budget constraint becomes

Refer to the information provided in Figure 6.6 below to answer the question(s) that follow. Figure 6.6 -Refer to Figure 6.6. Bill's budget constraint was originally EF. If his new budget constraint is AD, then his income

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow. Figure 6.5 -Refer to Figure 6.5. Molly's budget constraint is EF. If her income decreases while the price of the goods are unchanged, her new budget constraint could be

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow. Figure 6.5 -Refer to Figure 6.5. Molly's budget constraint is AD. If her income decreases, her new budget constraint is

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow. Figure 6.5 -Refer to Figure 6.5. Molly's budget constraint is EF. If her income decreases and the price of CDs increases, her new budget constraint could be

Refer to the information provided in Figure 6.6 below to answer the question(s) that follow. Figure 6.6 -Refer to Figure 6.6. Bill's budget constraint is BD. If the price of bell peppers increases, Bill's new budget constraint is

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow. Figure 6.5 -Refer to Figure 6.5. Molly's budget constraint is EF. If her income decreases while the price of the goods are unchanged, her new budget constraint is

Quiz 6: Household Behavior and Consumer Choice

Refer to the information provided in Figure 6.6 below to answer the question(s) that follow. Figure 6.6 -Refer to Figure 6.6. Bill's budget constraint was originally EF. If his new budget constraint is CD, then his income

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow. Figure 6.5 -Refer to Figure 6.5. Molly's budget constraint is BD. Molly's income is $375, the price of a DVD is $15 and the price of a CD is $25. At point D she is buying ________ DVDs and ________ CDs.

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow. Figure 6.5 -Refer to Figure 6.5. Molly's budget constraint is CD. If the price of CDs increases, her new budget constraint becomes

Michael can buy either pizzas or submarine sandwiches. If the prices of pizzas and submarine sandwiches fall by half and so does Michael's money income, we can conclude that Michael's budget constraint will

Michael can buy either pizzas or submarine sandwiches. If the prices of pizzas and submarine sandwiches double and Michael's money income triples, we can conclude that Michael's budget constraint will

Refer to the information provided in Figure 6.6 below to answer the question(s) that follow. Figure 6.6 -Refer to Figure 6.6. Bill's budget constraint was originally CD. If his new budget constraint is EF, then his income

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow. Figure 6.5 -Refer to Figure 6.5. Molly's budget constraint is BD. Molly's income is $400, the price of a DVD is $15 and the price of a CD is $20. At point B she is buying ________ DVDs and ________ CDs.

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow. Figure 6.5 -Refer to Figure 6.5. Molly's budget constraint is CD. Molly's income is $200, the price of a DVD is $7.50 and the price of a CD is $10. At point C, she is buying ________ DVDs and ________ CDs.

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow. Figure 6.5 -Refer to Figure 6.5. Molly's budget constraint is CD. Molly's income is $75, the price of a DVD is $3 and the price of a CD is $5. At point D, she is buying ________ DVDs and ________ CDs.

Refer to the information provided in Figure 6.6 below to answer the question(s) that follow. Figure 6.6 -Refer to Figure 6.6. Bill's budget constraint is CD. If the price of bell peppers increases, Bill's new budget constraint is

Refer to the information provided in Figure 6.6 below to answer the question(s) that follow. Figure 6.6 -Refer to Figure 6.6. Bill's budget constraint was originally AD. If his new budget constraint is EF, then his income

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow. Figure 6.5 -Refer to Figure 6.5. Molly's budget constraint is AD. If the price of CDs decreases, her new budget constraint becomes

Refer to the information provided in Figure 6.6 below to answer the question(s) that follow. Figure 6.6 -Refer to Figure 6.6. Bill's budget constraint was originally EF. If his new budget constraint is AD, then his income

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow. Figure 6.5 -Refer to Figure 6.5. Molly's budget constraint is EF. If her income decreases while the price of the goods are unchanged, her new budget constraint could be

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow. Figure 6.5 -Refer to Figure 6.5. Molly's budget constraint is AD. If her income decreases, her new budget constraint is

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow. Figure 6.5 -Refer to Figure 6.5. Molly's budget constraint is EF. If her income decreases and the price of CDs increases, her new budget constraint could be

Refer to the information provided in Figure 6.6 below to answer the question(s) that follow. Figure 6.6 -Refer to Figure 6.6. Bill's budget constraint is BD. If the price of bell peppers increases, Bill's new budget constraint is

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow. Figure 6.5 -Refer to Figure 6.5. Molly's budget constraint is EF. If her income decreases while the price of the goods are unchanged, her new budget constraint is

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow. Figure 6.5 -Refer to Figure 6.5. Molly's budget constraint is BD. Molly's income is $375, the price of a DVD is $15 and the price of a CD is $25. At point D she is buying DVDs and CDs.

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow. Figure 6.5 -Refer to Figure 6.5. Molly's budget constraint is BD. Molly's income is $400, the price of a DVD is $15 and the price of a CD is $20. At point B she is buying DVDs and CDs.

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow. Figure 6.5 -Refer to Figure 6.5. Molly's budget constraint is CD. Molly's income is $200, the price of a DVD is $7.50 and the price of a CD is $10. At point C, she is buying DVDs and CDs.

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow. Figure 6.5 -Refer to Figure 6.5. Molly's budget constraint is CD. Molly's income is $75, the price of a DVD is $3 and the price of a CD is $5. At point D, she is buying DVDs and CDs.