An increase in investment shifts the ae curve upward by an amount equal to the ______, and shifts the ad curve rightward by an
1 answer:
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Answer:
The correct answer is C.
Explanation:
Supposing that more is preferred to less, Maria would never choose a point where she's below her budget line. That is, Maria will spend all of her rent.
Therefore we can already discard possibilities like:
- A. Because
⇒ $33<$36
The individual is not maximizing utility is she were to choose this bundle.
- B. Because
⇒ $42>$36
This bundle is beyond what Maria can afford.
Further, assuming that Maria has convex preferences, she'll choose a point where she buys more of both goods rather than specializing in the consumption of one of them. That leaves bundle D aside over bundle C because even though both bundles satisfy her budget condition M=$36, bundle C provides more utility to Maria than bundle D for being located in a more centric solution along her budget line.
Answer:
Your task is to take this <em>supply schedule</em> and construct a graphical representation of the data. In doing so, you determine that as the price of soup rises, the quantity of soup supplied increases. This confirms the <em>law of supply.</em>
Explanation:
We draw <u>the supply curve</u> being X-axis the quantity and Y-axis the Price.
The date to construct this representation is in the supply schedule.
This confirms the "law of supply" which states that as the price of a good icnrases the willingess to produce more units of that good increases as there is higher revenue.
