Suppose that the prices of good A and good B were to suddenly double. If good A is plotted along the horizontal axis,
A) the budget line will become steeper.
B) the budget line will become flatter.
C) the slope of the budget line will not change.
D) the slope of the budget line will change, but in an indeterminate way.
C
You might also like to view...
What is perfect price discrimination? Is perfect price discrimination efficient? Why or why not?
What will be an ideal response?
If the Fed sells United States government securities on the open market, this will cause
A. an increase in the interest rate which reflects as increase in money supply. B. interest rates to fall in the loanable funds market. C. an increase in the money supply. D. an increase in the interest rate which discourages borrowing for investment.
An economy in which a central authority draws up a plan that establishes what will be produced and when, sets production goals, and makes rules for distribution is a
A. free-market economy. B. command economy. C. laissez-faire economy. D. public-goods economy.
In terms of absolute dollar volume, the top 3 leaders in world exports are:
A. Japan, China, and the European Union. B. the United States, England, and Canada. C. Germany, England, and the United States. D. China, Germany, and the United States.