The Below Indifference Map Shows the Various Combinations of Hours

question 89

Multiple Choice

The below indifference map shows the various combinations of hours of music and apples that yield different levels of utility.Figure 7.1

-Suppose a budget line is drawn with X on the horizontal axis and Y on the vertical axis. A decrease in the price of X will cause:

• A)an increase in the vertical intercept and no change in the horizontal intercept.
• B)a decrease in the vertical intercept and no change in the horizontal intercept.
• C)an increase in the horizontal intercept and no change in the vertical intercept.
• D)a decrease in the horizontal intercept and no change in the vertical intercept.
• E)a parallel, rightward shift of the budget line.

---

Definitions:

Random Sampling

A technique for selecting a sample from a population in a way that every member has an equal chance of being chosen.

Educated Guess

An assumption or prediction made based on known facts and logical reasoning, despite the absence of complete information.

Empirical Evidence

Information acquired by observation or experimentation that is used to confirm or disprove a hypothesis or theory.

Theory

A system of ideas intended to explain something, based on general principles independent of the thing to be explained.