Conceptual questions. (9 points) True or false. Explain. No credit will be given with no...

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Conceptual questions. (9 points) True or false. Explain. No credit will be given with no explanation. (a) (3 points) Assume that a consumer spends all of her income on two goods. If the two goods are perfect complements, then both goods must be normal goods. (b) (3 points) The level of utility decreases as an individual moves downward along the demand curve. (c) (3 points) Rob has a consumption bundle consisting of movie tickets and football tickets. He is currently willing to trade 4 movie tickets for 1 football ticket. Movie tickets cost $12 each and a football ticket costs $55. Assertion: Rob should give up the movie tickets for the football ticket.

David · Accepted Answer

Question 1 
This statement is true.  This is because the consumer spends all the income on the two goods which 
are complements. Let us call them X and Y. Now when the income of the consumer increases, the 
consumption of the product would have to increase so as to accommodate this increase.

Conceptual questions. (9 points) True or false. Explain. No credit will be given with no explanation. (a) (3 points) Assume that a consumer spends all of her income on two goods. If the two goods are...

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