The Figure Given Below Shows the Consumption Function of a Household

question 66

Multiple Choice

The figure given below shows the consumption function of a household.
Figure 9.2

-In Figure 9.2, a decrease in disposable income would be illustrated by:

• A) shifting the whole consumption function upward.
• B) shifting the whole consumption function downward.
• C) moving along the consumption function to the left.
• D) moving along the consumption function to the right.
• E) moving from point A to point D.

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Definitions:

Cournot Equilibrium

A state in an oligopoly market where each firm chooses its quantity to maximize its profit, assuming the quantities of its competitors are fixed.

Collude

To engage in secret or illegal cooperation or conspiracy, especially in order to cheat or deceive others.

Stackelberg Duopoly

A model of imperfect competition in which one firm sets its output first, influencing the market response of the other firm.

MR

Marginal Revenue, which is the increase in revenue that results from the sale of one additional unit of a product or service.