The quantity of good A is measured along the vertical axis, and the quantity of good B is measures along the horizontal axis. If the price of Good A falls
A) the vertical intercept of the budget line moves along the vertical axis away from the origin.
B) the vertical intercept of the budget line moves along the vertical axis toward the origin.
C) the horizontal intercept (along Good B) of the budget line will increase.
D) none of the above
Answer: A
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Which of the following statements is true?
A) The slope of the labor supply curve depends only on the income effect of a wage rate change. B) The income effect and the substitution effect of a wage rate change work in the same direction. C) The income effect and the substitution effect of a wage rate change work in opposite directions. D) The slope of the labor supply curve depends only on the substitution effect of a wage rate change.
Which type of policy raises the most revenue for the government?
A) tariff B) quota C) voluntary export restraints D) If they are set at the same level, all of the above raise the same amount of revenue. E) None of the above answers is correct because none of the policies raises revenue for the government.
Indifference curves that are closest to the origin are preferable to ones that are farther from the origin
a. True b. False Indicate whether the statement is true or false
In the above figure, what is the profit-maximizing price and output?
A. $10, 17 B. $11, 16 C. $9, 14 D. $13, 14