Question

1. The point on an indifference curve represent consumption bundles among which the consumer is ________ or all consumption bundles are _________.
2. Recall the law of demand. How can this be shown using indifference curves? (Hint: what conditions do we need to hold constant? What changes?)
3. With commodity X on the horizontal axis and commodity Y on the vertical axis, a change in the slope of the budget line from -7/2 to -3/2, according to indifference curve analysis, will cause the consumption of ______ to rise relative to _____.
4. If an individual is prepared to pay $3 for the first unit of a commodity, $2 for the second unit, $1 for the third unit, and the market price is $1, consumers’ surplus is ______
5. Points on the budget line represent the possible combinations of the _________ that would just exhaust the consumer's ________.
6. The slope of the budget line is the inverse of the ____________

Answer 1