A consumers budget constraint refers to the collection of al

A consumer\'s budget constraint refers to the collection of all possible bundles that ___________. A. a consumer finds suitable for possible purchase. B. a consumer can purchasea consumer can purchase with her income C. give the consumer the same degree of satisfaction. D. exactly exhaustexactly exhaust a consumer\'s entire budget. A decrease in a consumer\'s income causes her budget constraint to encompass________ bundles. A. more B. fewer Why does a demand curve with a constant slope not have a constant elasticity? A. Slope is based on absolute change and elasticity is based on percentage change. B. Slope is based on percentage change and elasticity is based on absolute change. C. Elasticity depends on more variables than does slope. D. Slope measures responsiveness and elasticity measures change. The price elasticity of demand for a good is likely to be moremore elastic __________. A. the larger the number of close substitutes for the good. B. the higher the budget share spent on the good. C. the longer the available time during which consumers can adjust. D. all of the above.

Solution

1, A consumer\'s budget constraint refers to the collection of all possible bundles that consumer can purchase with her income.

2. A decrease in a consumer\'s income causes her budget constraint to encompass fewer bundles.

3. A demand curve with a constant slope not have a constant elasticity because Slope is based on absolute change and elasticity is based on percentage change.

4. The price elasticity of demand for a good is likely to be more elastic the larger the number of close substitutes for the good, the higher the budget share spent on the good, the longer the available time during which consumers can adjust. Thus the correct option for this is all the above.