A Consumer's Demand Curve for Apples

question 123

Multiple Choice

A consumer's demand curve for apples

• A)is derived by varying the price of apples and determining the quantities of apples at which the marginal utility per dollar spent on apples equals the marginal utility per dollar spent on other goods
• B)is derived by determining how many apples will be purchased at different levels of income
• C)is derived by varying the prices of other goods and determining the quantities of apples at which the marginal utilities per dollar spent on all goods are equal
• D)slopes downward whenever the income and substitution effects cancel out
• E)will be vertical if the substitution effect outweighs the income effect

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Definitions:

Budget Constraints

The limitations on the consumption bundles that a consumer can afford based on their income and the prices of goods.

Hamburger

A favored culinary option that includes a grilled or fried patty made from minced meat, typically beef, encased within a cut-open bun and frequently accompanied by a range of sauces and additional ingredients.

Labor Supply Curve

is a graphical representation showing the relationship between the amount of labor workers are willing to supply and the wage rate.

Substitution Effect

The economic principle that as prices rise, consumers will replace more expensive items with less costly alternatives.