Between 1990 and 2000, a Particular Consumer's Income Increased by 25

question 13

Multiple Choice

Between 1990 and 2000, a particular consumer's income increased by 25%, while the price of X and of "all other goods" both increased by 10%.It was observed that the consumer's consumption of X and of all other goods both increased by 15%.

• A)The consumer did not regard X and "all other goods" as perfect complements.
• B)The consumer's preferences cannot be represented by a Cobb-Douglas utility function.
• C)The consumer's preferences can be represented by a Cobb-Douglas utility function.
• D)The consumer's preferences cannot be represented by a quasilinear utility function.
• E)More than one of the above options is true.

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Definitions:

Material Costs

The expenses incurred for materials that are directly used in the production of goods or services.

Specified Characteristics

Detailed attributes or features that are identified as requirements or standards for a particular object, process, or service.

Nominal

Relating to names or categories that are only labeled and do not have an inherent order or rank.

Ordinal

Relating to a classification where order or position is significant but not the magnitude of difference between items.