Two Indifference Curves for a Given Consumer

question 36

Multiple Choice

Two indifference curves for a given consumer:

• A) can never intersect
• B) may intersect if the price of one of the goods represented by the curve changes
• C) will shift whenever there is a change in the price of the other good
• D) none of the other three answers

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Definitions:

Double-declining-balance Method

A depreciation approach that speeds up the process by using a rate twice that of the typical straight-line method.

Sales Price

The amount of money charged for a product or service, or the sum a customer pays to purchase something.

Salvage Value

The presumed value for resale of an asset at life’s operational end.

Depreciation

The methodical reduction of the recorded cost of a fixed asset to allocate its expense over its useful life.