Goods X and Y

question 9

Multiple Choice

Goods X and Y

For the following questions, assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions.

-Refer to Goods X and Y.Which of the following would cause the vertical intercept to move upwards?

• A) A decrease in the price of good Y.
• B) An increase in the price of good X.
• C) An increase in the price of good Y
• D) A decrease in the price of good Y.

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Definitions:

Automatization

The process of making actions or processes automatic, reducing the need for conscious attention in their execution.

Encoding

The procedure of changing data into a format that allows for its storage in memory.

Information Processing

A theory describing how the human mind takes in, stores, retrieves, and uses information, likening the mind to a computer.

Sensory Storage

The initial process of storing information, taken in through the senses, for a very brief period.