The budget line shows:

Refer to the above data. What quantities of X and Y should be purchased to maximize utility?

Refer to the above diagram where xy is the relevant budget line and I1, I2, and I3 are indifference curves. If the consumer is initially at point L, he or she should: 

If the price elasticity of demand for a product is unity, a decrease in price will:

The demand for a luxury good whose purchase would exhaust a big portion of one’s income is:

If the demand for farm products is price inelastic, a good harvest will cause farm revenues to:

Refer to the above data. If the price of X decreases to $2, then the utility-maximizing combination of the two products is:

The main point of Frederic Bastiat’s satire is that

The basic type of intervention by central banks under the managed floating exchange rate system is to:

For a linear demand curve: