If both prices decreases by 50%（）
A. budget constraint will be unchanged
B. slope of the budget constraint will increase
C. slope of the budget constraint will decrease
D. budget constraint will shift outward in a parallel fashion
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When the price of a good changes, the substitution effect can be found by comparing the equilibrium quantities purchased（）
A. on the old budget line and the new budget line
B. on the original indifference curve when faced with the original prices and when faced with the new prices
C. on the new budget line and a hypothetical budget line that is a shift back to the original indifference curve parallel to the new budget line
D. on the new indifference curve
The assumption of completeness means that（）
A. the consumer can rank all possible consumption bundles
B. more of a good is always better
C. the consumers can rank all affordable consumption bundles
D. all preferences conditions are met
The expression “increase in quantity supplied” is illustrated graphically as a（）
A. leftward shift in the supply curve
B. rightward shift in the supply curve
C. movement up along the supply curve
D. movement down along the supply curve
Joe’s income is $500, the price of food （F） is $2 per unit, and the price of shelter （S） is $100. Which of the following represents his budget constraint（）
A. 500 = 2F + 100S
B. F = 250 – 50S
C. S = 5 – 0.02F
D. All of the above
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