Refer to the graphs shown, which show indifference curve analysis with the associated demand curves.The best explanation for a movement from point D to point F is:

A. an inward rotation of the budget constraint along the x-axis, forcing the consumer to move from point B to point A.
B. an outward rotation of the budget constraint along the x-axis, allowing the consumer to move from point A to point B.
C. a parallel shift of the budget constraint, allowing the consumer to move from point A to point C.
D. an outward rotation of the budget constraint along the y-axis, allowing the consumer to move from point B to point C.


Answer: B

Economics

You might also like to view...

Define net borrower, net lender, creditor nation, and debtor nation. Discuss the difference between a net borrower and a debtor nation

What will be an ideal response?

Economics

For each pair of items below determine which product would have the higher price elasticity of demand (in absolute value)

a. Insulin for a diabetic or aspirin for someone suffering a headache. b. A new Whirlpool 27 cu.ft. side-by-side refrigerator or electricity to power your all-electric home. c. A can of Red Bull or soft drinks in general.

Economics

Which of the following can be described as when a bank buying securities owned by a business while agreeing to sell them back at a later date?

A) repurchase agreement B) reverse repurchase agreement C) federal funds D) discount loans

Economics

Which situation below would represent a surplus in the fertilizer market?

A. quantity demanded is 1.2 million; quantity supplied is 1.1 million. B. market price $2.00 per bag; equilibrium price $2.25 per bag. C. market price $2.50 per bag; equilibrium price $2.00. D. quantity supplied this year is 25% greater than quantity supplied last year.

Economics