In a budget line, an increase in income is represented graphically by:
A. a rightward parallel shift of the budget line.
B. a change in the slope of an indifference curve.
C. a leftward parallel shift of the budget line.
D. a change in the slope of the budget line.
Answer: A
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A merger between two manufacturers of computers would result in which of the following?
a. A vertical merger. b. A conglomerate merger. c. A horizontal merger. d. A monopoly merger.
Taxes on labor tend to encourage the elderly to retire early
a. True b. False Indicate whether the statement is true or false
At a price of $9.50/pound, people buy 45 pounds of lamb. At a price of $10.50/pound, people buy 35 pounds of lamb. What is the arc elasticity of demand for lamb in this price range?
a. 1.0 b. 2.5 c. 0.4 d. 3.0 e. none of the