True or False. If False explain why it's false.
1. If all prices are doubled an money income is the left the same, the budget set does not change because the relative prices do not change.
2. A decrease in income pivots the budget line around the bundle initially consumed.
3. If preferences are well-behaved, then for any commodity bundle (x1,x2), the set of commodity bundles that are worse than (x1,x2) is a convex set.
4. The marginal rate of substitution measures the distance betwee one indifference curve and the next one.
5. If someone has the utility function U= 2min(x, y), then x and y are perfect complements for that person.
6. At the boundary optimum, a consumers indifference curve must be tangent to her budget line.
7. If two goods are substitutes, then an increase in the price of one of them will increase the demand for the other.
8. An Engel curve is a demand curve with the vertical and horizontal axes reversed.
9. An inferior good is less durable than a normal good.
10. When other variables are held fixed, the demand for a Giffen good rises when income increase.
