If the price of one good increases while the price of the other good and the consumer's income remain unchanged, what will happen to the budget line?
A) The budget line rotates inward from the intercept on the axis of the good that did not change in price.
B) The budget line rotates outward from the intercept on the axis of the good that did not change in price.
C) The budget line shifts inward without a change in slope.
D) The budget line shifts outward without a change in slope.
A
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A perfectly competitive firm should continue to operate even at a loss in the short run if
A. it can cover its variable costs of production. B. its revenues are less than its fixed costs. C. it has some fixed costs that cannot be brought down to zero. D. its output is above the break-even point.
Suppose the CPI in 1983 is 100 and the CPI this year is 172. These values for the CPI mean that
A) inflation between the two years was 172 percent. B) typically, a good whose price was $100 in 1983 had a price of $172 this year. C) typically, a good whose price was $172 in 1983 had a price of $100 this year. D) typically, a good whose price was $100 in 1983 had a price of $139 this year. E) typically, a good whose price was $100 in 1983 had a price of $58 this year.
After a corporation issues stock, the stock
a. cannot be resold. b. can be resold only if the corporation wants to buy it back. c. can be resold on exchanges; the resale will raise additional funds for the corporation. d. None of the above are correct.
If the expansion of output in an industry leads to unchanged resource prices, the industry is most likely to be a(n):
A. decreasing cost industry. B. increasing cost industry. C. constant cost industry. D. industry characterized by economies of scale.