Author Question: The indifference curve in the above figure A) could illustrate a person's preferences for ... (Read 53 times)

Jramos095

  • Hero Member
  • *****
  • Posts: 528
The indifference curve in the above figure
 
  A) could illustrate a person's preferences for identical computer disks made by two different companies.
  B) could illustrate a person's preferences for right-handed and left-handed gloves.
  C) has a marginal rate of substitution that at first decreases and then increases.
  D) None of the above statements is correct.

Question 2

List the factors change demand and shift the demand curve. Tell what happens to demand and the demand curve when there is an increase in the factor.
 
  What will be an ideal response?



meganmoser117

  • Sr. Member
  • ****
  • Posts: 303
Answer to Question 1

A

Answer to Question 2

One factor that changes demand is a change in income. An increase in income increases demand and shifts the demand curve rightward for a normal good. An increase in income decreases demand and shifts the demand curve leftward for an inferior good. A change in the price of a substitute or complement also changes demand. An increase in the price of a substitute increase demand and shifts the demand curve rightward while an increase in the price of a complement decreases demand and shifts the demand curve leftward. Expectations, the population, and preferences also change demand. If people expect their income to increase, or if they expect the price of the good to be higher in the future, or if the population increases (so that the number of buyers increases), or if people's preferences for the good increase, demand increases and the demand curve shifts rightward.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Medication errors are three times higher among children and infants than with adults.

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Did you know?

Approximately 15–25% of recognized pregnancies end in miscarriage. However, many miscarriages often occur before a woman even knows she is pregnant.

Did you know?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

Did you know?

Pubic lice (crabs) are usually spread through sexual contact. You cannot catch them by using a public toilet.

For a complete list of videos, visit our video library