Answer: d. the price of pizza rises to $12.
Homer buys pizza for $10 and Pepsi for $2. He has income of $100. His budget constraint will shift inward if
a. his income rises to $150.
b. the price of pizza, the price of Pepsi, and his income all rise by 50 percent.
c. the price of Pepsi falls to $1.
d. the price of pizza rises to $12.
Economics
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Refer to the above figures. Which panel(s) represent the effect of an increase in the price level?
A) Panel A only B) Panels A and C only C) Panel D only D) none of the panels
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A corporate bond is a promissory note issued by a firm when it sells stock.
Answer the following statement true (T) or false (F)
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Refer to the information provided in Figure 30.1 below to answer the question(s) that follow.
Figure 30.1Refer to Figure 30.1. If the economy is currently at Point C, ________ in aggregate output moves the economy to I3.
A. pessimism about past growth B. optimism about future growth C. pessimism about future growth D. optimism about past growth
Economics