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Determine whether or not the following statements are true or false. A. If the price consumption...

Determine whether or not the following statements are true or false.

A. If the price consumption curve (as the price of x changes) is horizontal, then good y must be a normal good.

B. If the income-consumption curve is upward sloping, then the price consumption curve (as the price of x changes) must be upward sloping too.

C. If the income-consumption curve is a horizontal line, then the cross-price elasticity of demand for good y with respect to the price of good x must be positive.

D. If the Engel curve for good x is vertical, then the law of demand must hold for good x.

E. A tax cut that raises the after-tax wage rate will most likely result in more hours worked if the substitution effect outweighs the income effect.

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