In the labor-leisure model, a wage decrease will cause the income constraint line to

Select one:

a.shift down parallel to the old income constraint

b.shift up parallel to the old income constraint

c.rotate downward (inward)

d.rotate upward (outward)

In the labor-leisure model, if you win money in the lottery then the income constraint line will

Select one:

a.shift down parallel to the old income constraint

b.shift up parallel to the old income constraint

c.rotate downward (inward)

d.rotate upward (outward)

Person A and Person B have demands for apples (X) as, XA = 100 2P and XB = 200 2P, where X is the quantity demanded and P is market price for apples. The supply curve for apples is constant (flat) at 50. What is the quantity of apples?

Select one:

a.50

b.100

c.150

d.200

There are 100 identical individuals with the same demand curve, written as (inverse demand): P = 50 -2X. The inverse supply curve for X is P = 900 +30X. ``What is the equilibrium Price and Quantity of X

Select one:

a.

X = 20; P = 1,500

b.

X = 17.82; P = 1,434.60

c.

X = 200; P = 150

d.

X = 40; P = 3,000

A consumer maximizes utility with choosing two goods books (B) and movies (M) with prices PBooks and PMovies. The marginal utilities of goods B and M are written as MUB and MUM. Which of the following it NOT a correct writing of the utility maximizing condition?

Select one:

a.MUB/MUM = PB/PM

b.MUM/MUB = PM/PB

c.MUB/PB = MUM/PM

d.MUB/PM = MUM/PB