-If People Continue to Walk Along a Contour Line, What

question 64

Multiple Choice

-If people continue to walk along a contour line, what will eventually happen?

• A)They will experience a wide range of weather conditions.
• B)They will encounter many forms of life.
• C)They will climb uphill.
• D)They will end up where they started.

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Definitions:

Hicksian Substitution Effect

Alternative to the Slutsky equation for decomposing price changes without recourse to indifference curves.

Indifference Curves

A graph showing different bundles of goods between which a consumer is indifferent.

Lagrangian

Function to be maximized or minimized, plus a variable (the Lagrange multiplier) multiplied by the constraint.

Lagrange Multiplier

A technique used in constrained optimization problems to find the maximum or minimum of a function subject to constraints.