SOLVED

11) Bikes and roller blades are substitutes. Marginal utility theory predicts that when the price of a bike rises, the quantity of bikes demanded A) decreases and the demand curve for roller blades shifts rightward. B) decreases and the demand curve for roller blades shifts leftward. C) decreases and a movement occurs down along the demand curve for roller blades. D) increases and the demand curve for roller blades shifts rightward. E) increases and the demand curve for roller blades shifts leftward. 12) Beverly is currently in consumer equilibrium. An increase in her income A) increases her total utility. B) decreases her total utility. C) increases her marginal utility from all goods. D) decreases her marginal utility from all goods. E) increases her consumption of all goods. 13) Ron starts out in consumer equilibrium, consuming two goods, X and Y. The price of Y rises. Immediately after the rise in price A) MUX/PX> MUY/PY, and then Ron increases his consumption of Y. B) MUX/PX> MUY/PY, and then Ron decreases his consumption of Y. C) MUX/PX< MUY/PY, and then Ron increases his consumption of Y. D) MUX/PX< MUY/PY, and then Ron decreases his consumption of Y. E) MUX/PX> MUY/PY, and then Ron increases his consumption of X and Y. 14) Ron starts out in consumer equilibrium, consuming two goods, X and Y. The price of X rises. Immediately after the rise in price A) MUX/PX> MUY/PY, and then Ron increases his consumption of X. B) MUX/PX> MUY/PY, and then Ron decreases his consumption of X. C) MUX/PX< MUY/PY, and then Ron increases his consumption of X. D) MUX/PX< MUY/PY, and then Ron decreases his consumption of X. E) MUX/PX> MUY/PY, and then Ron increases his consumption of X and Y. 15) Ron starts out in consumer equilibrium, consuming two goods, X and Y. Ron’s income rises. At this point, we can definitely conclude that A) MUX/PX> MUY/PY, and then Ron increases his consumption of X. B) MUX/PX> MUY/PY, and then Ron decreases his consumption of X. C) MUX/PX< MUY/PY, and then Ron increases his consumption of X. D) MUX/PX< MUY/PY, and then Ron decreases his consumption of X. E) none of the above. Â Â