In the figure above, suppose the original budget line is BD. A fall in the price of a compact disc will

A) rotate the budget line to AD.
B) rotate the budget line to CD.
C) not move the budget line.
D) result in a parallel leftward shift of the budget line.


B

Economics

You might also like to view...

A financial market in which previously issued securities can be resold is called a ________ market

A) primary B) secondary C) tertiary D) used securities

Economics

An increase in the demand for a product will shift the demand curve for labor producing the product to the right

a. True b. False Indicate whether the statement is true or false

Economics

A monopoly's short-run supply curve is upward-sloping because of diminishing marginal returns.

a. true b. false

Economics

Which of the following is eliminated when the economy's output is equal to full-employment GDP?

A. The MPC. B. The multiplier. C. Leakages and injections. D. The real GDP gap.

Economics