Suppose That a Consumer's Preferences Are Well Behaved in That

question 38

Multiple Choice

Suppose that a consumer's preferences are well behaved in that properties 4-1 to 4-4 are satisfied and the initial budget constraint is given by 300 = 2X + 4Y. At the initial budget constraint, this consumer purchases 100 units of good X and 25 units of good Y. Suppose the price of X increases to $4 per unit, resulting in a new consumption bundle consisting of 60 units of X and 15 units of Y. Then, the slope of the inverse demand for good X over this consumption range is:

• A) 0.05.
• B) -0.05.
• C) -0.267.
• D) -0.444.

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Definitions:

Organising

The process of arranging resources and tasks to achieve a specific goal or operation efficiently, often involving planning, coordinating, and controlling resources.

Critical Path

The sequence of stages determining the minimum time required for an operation, especially in project management, identifying the longest stretch of dependent tasks and establishing the shortest possible project duration.

Immediate Predecessor

A term used in project management and planning, referring to an activity that directly precedes another activity in a sequence, without any intervening activities.

Activity Durations

Activity Durations refer to the length of time needed to complete specific tasks or activities within a project or process.