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03-11-2008, 10:51 PM
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| Economics questions...? 1. A substituion effect comes about because a price reduction of one product gives consumers more income to spend on other goodes. (True or False)?? 2. given a consumer's income all the affordable cominations of two goods that leave the consumer with left over money are on the budget line(true or false)?? 3. Suppose at $6 the quanity demanded for the download of Astor Piazzolla's music from his "Buenos Aires Bajo Zero" Album is 4 songs. if the subsitiution effect of the price DECREASE from $6 to $4 is 4 songs, and the income effect is 2 songs, the quanity demanded for Piazzolla's music will: A) fall by a total of 6 songs B) remain unchanged C) increase by 6 songs D) increase by 4 songs thanks guys      |
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