Suppose That the Quantity of Hamburgers Is Measured Along the Vertical

question 39

Multiple Choice

Suppose that the quantity of hamburgers is measured along the vertical axis and that the number of bags of popcorn is measured along the horizontal axis. The budget constraint has a vertical intercept of 10 hamburgers, and the slope of the line is -1. If the price of popcorn doubles, we know that

• A) the consumer will buy half as many bags of popcorn as before.
• B) the new equilibrium will have a marginal rate of substitution of -2.
• C) the new equilibrium will have a marginal rate of substitution of -0.5.
• D) the vertical axis of the budget line shifts to 5 hamburgers.

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Definitions:

Classical Conditioning

A learning process in which a neutral stimulus becomes associated with a meaningful stimulus and acquires the capacity to elicit a similar response.

Flashbulb Memory

A highly detailed and vivid memory of a momentous or emotionally significant event, which feels as if it has been captured in a photograph.

Implicit Memory

A type of memory that enables us to perform tasks without conscious awareness of these previous experiences, such as riding a bike.

Procedural Memory

A type of long-term memory responsible for knowing how to perform different actions and skills.