Principles of Economics 2.2*

Question 1

What are the 3 elements in the study of consumer behavior?

Question 2

What’s the key statement when you wanna say that ‘consumers want to be as happy or satisfied as possible’?

Question 3

What’s ‘the point of tangency’ on a budget constraint line and an indifference curve?

Question 4

What’s the equation for the slope of an indifference curve?

Question 5

What’s the correlation between the price of a product and its level of utility?

Question 6

How does an increase in income change the budget constraint line?

Question 7

How does a decrease in income change the budget constraint line?

Question 8

What’s the correlation between an increase in income and demand?

Question 9

What are the 2 things that happen when the price of a good changes relative to the price of another?

Question 10

Explain what happens when the price of a good changes relative to the price of another graphically