If a Consumer Is Initially in Equilibrium, an Increase in Money

question 153

Multiple Choice

If a consumer is initially in equilibrium, an increase in money income will

• A)move the consumer to a new equilibrium on a lower indifference curve.
• B)move the consumer to a new equilibrium on a higher indifference curve.
• C)make the slope of the consumer's indifference curves steeper.
• D)have no effect on the equilibrium position.

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Definitions:

Significant Other

A person of great importance in one's life, typically a romantic or life partner.

Generalized Other

A concept in sociology that refers to the general notion that a person has of the common expectations and attitudes in society.

Adaptation

Is the process of changing one’s actions to maximize the degree to which an environment satisfies one’s needs and interests.

Socialization

The process by which individuals learn and internalize the values, beliefs, and norms of their society, shaping their behaviors and personality.