--%>

Substitution problem on consumption

I have a problem in economics on Substitution problem on consumption. Please help me in the following question. Teddy forever eats peanut butter and jelly sandwiches for lunch as he should live on $20 dollars a week. Jelly jumped in price and, to please his hunger, Teddy bought more Ramen noodles and less jelly. Teddy’s consumption of the peanut butter will most likely: (i) Decrease. (ii) Become more perceptive to its price. (iii) Be unaffected. (iv) Raise. (v) Teddy no longer eats the peanut butter.

Select the most accurate option.

   Related Questions in Microeconomics

  • Q : Trends in Income Distribution The year

    The year in that a long-run trend towards greater equality within the U.S. income distribution was reversed, therefore income since then has become less equally distributed, it was roughly: (w) 1945. (x) 1960. (y) 1975. (z) 1990.

    Q : Labor Contracts-Agreement of shops I

    I have a problem in economics on Labor Contracts-Shop Agreements. Please help me in the following question. The union leaders would tend to favor the contract clause needing: (1) A sweat shop. (2) An agency shop. (3) A union shop. (4) An open shop.

  • Q : Profits predict by structure conduct

    When cost structures and market demands were identical for each of the given types of firms, in that case the structure-conduct-performance paradigm would predict the greatest profits for: (1) pure monopolist. (2) price-discriminating monopolist. (3)

  • Q : Function of money in economy State the

    State the main function of money in economy? Answer: The major function of money in an economic system is to ease the exchange of services and goods.

  • Q : Prohibition in Pure Economic Profits

    Pure economic profits are NOT: (w) normal costs of production. (x) reduced to “normal” levels in long-run pure competition. (y) zero in long run monopolistic competition. (z) possible under pure competition in the short-run.

  • Q : Labor Union-union membership The basic

    The basic idea that unions are more influential than ever before is: (i) Supported by the consequences of unions on inflationary spirals. (ii) Reflected in the growing numbers of violent and expensive strikes. (iii) Contrary to the fact that union membership is refusi

  • Q : Market adjustment for new equilibrium

    This market for peanuts will adjust to a new equilibrium at price: (1) P0 and quantity Q0. (2) P1 and quantity Q0. (3) P2 and quantity Q2. (4) P3 and quantity Q1.

  • Q : Short-run shut-down point for profits

    Short-run shut-down point of the cranberry farm occurs at a price of: (i) P1. (ii) P2. (iii) P3. (iv) P4. (v) Not computable from these figures.

    Q : Natural monopolies closely regulated by

    Inside the United States, public utilities like natural gas lines or electric companies are frequently: (w) quite competitive while they vie for the consumer's dollars. (x) natural monopolies which are closely regulated by government. (y) seldom closely regulated thro

  • Q : Cartel Select the right answer of the

    Select the right answer of the question. We would expect a cartel to achieve: A) both allocative efficiency and productive efficiency. B) allocative efficiency, but not productive efficiency. C) productive efficiency, but not allocative efficiency. D) neither allocati