If the price of a good rises and the consumer's budget remains the same, what happens to the consumer's consumption possibilities?
What will be an ideal response?
The consumer's consumption possibilities decrease. This decrease is reflected by the change in the budget line, which rotates inward. The inward movement means that consumption possibilities that had previously been affordable are no longer affordable and hence the possible consumption possibilities have decreased.
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A. Both the buyer and the seller, but the seller usually gains more. B. Both the buyer and the seller. C. The buyer only. D. The seller only.
A theory is an untested assertion of alleged fact
a. True b. False Indicate whether the statement is true or false
A price floor set above equilibrium price will result in:
(a) An excess supply; (b) An excess demand; (c) The quantity supplied being in excess of the quantity demanded; (d) Both (a) and (c) above.
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Answer the following statement true (T) or false (F)