Tutorial 1

Question 1

MRS

Answer 1

MUL/MUC

Question 2

budget constraint

Answer 2

C = V + wT − wL

Question 3

Normal good

Answer 3

• Goods whose demand increases as consumer income increases.

Question 4

Inferior good

Answer 4

• Goods whose demand decreases as consumer income increases

Question 5

Giffen good

Answer 5

• A type of inferior good for which demand increases as its price increases

Question 6

MRL

Answer 6

MRL = p x MPL

Question 7

isocost slope

Answer 7

w/r