Question

17. Suppose that initially the price elasticity of supply is 2.5 when price is 3. Now if the supply curve has a parallel shift to the right, which of the following is a possible value for the new price elasticity of supply when price is 3? A. 1. B. 1.8. C. 2. D. More information is needed to answer this. 18. Suppose that Mary's utility function is U(X,Y) = min\{2X, Y\}, then her MRSxy at X = 2 and Y = 4 is A. 0. B. 1. C. 2. D. 3. E. 4. F. None of the above. 19. Suppose that Mary's utility function is U(X,Y) = 2X + Y, then her MRSxy is A. increasing. B. decreasing. C. constant. 20. An increase in a consumer's income alone will (a) shift the consumer's budget line to the left. (b) shift the consumer's budget line to the right. (c) make the consumer's budget line steeper. (d) make the consumer's budget line flatter.

          17. Suppose that initially the price elasticity of supply is 2.5 when price is 3. Now if the supply
curve has a parallel shift to the right, which of the following is a possible value for the new price
elasticity of supply when price is 3?
A. 1.
B. 1.8.
C. 2. D. More information is needed to answer this.
18. Suppose that Mary's utility function is U(X,Y) = min\{2X, Y\}, then her
MRSxy at X = 2 and Y = 4 is
A. 0.
B. 1.
C. 2.
D. 3.
E. 4.
F. None of the above.
19. Suppose that Mary's utility function is U(X,Y) = 2X + Y, then her MRSxy is
A. increasing.
B. decreasing.
C. constant.
20. An increase in a consumer's income alone will
(a) shift the consumer's budget line to the left.
(b) shift the consumer's budget line to the right.
(c) make the consumer's budget line steeper.
(d) make the consumer's budget line flatter.

17. Suppose that initially the price elasticity of supply is 2.5 when price is 3. Now if the supply
curve has a parallel shift to the right, which of the following is a possible value for the new price
elasticity of supply when price is 3?
A. 1.
B. 1.8.
C. 2. D. More information is needed to answer this.
18. Suppose that Mary's utility function is U(X,Y) = min{2X, Y}, then her
MRSxy at X = 2 and Y = 4 is
A. 0.
B. 1.
C. 2.
D. 3.
E. 4.
F. None of the above.
19. Suppose that Mary's utility function is U(X,Y) = 2X + Y, then her MRSxy is
A. increasing.
B. decreasing.
C. constant.
20. An increase in a consumer's income alone will
(a) shift the consumer's budget line to the left.
(b) shift the consumer's budget line to the right.
(c) make the consumer's budget line steeper.
(d) make the consumer's budget line flatter.

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