According to the following figure, what could have caused a consumer's budget line to shift from ML to MN?
A. a decrease in the price of Y
B. a decrease in the price of X
C. an increase in the price of Y
D. an increase in the price of X
E. cannot determine without more information
Answer: B
You might also like to view...
Demand is defined as
A) a schedule of how much of an item people will purchase at any particular price of that item during a specified time period, other things being constant. B) a specific quantity of an item that people want at a particular price of that item during a specified time period, other things being constant. C) a schedule of how much of a good or service people will purchase at any particular price of a different item during the specified time period, other things being constant. D) a specific quantity of a good or service that people will purchase at one particular price of another item during a specified time period, other things being constant.
Experiencing the winner's curse in a common-value auction means
a. You lost money in the auction b. You bid too low c. Your estimate of the value of the good being auctioned was too optimistic d. Your estimate of the value of the good being auctioned was too pessimistic
When a country's ability to maintain its fixed exchange rate is doubted by investors:
A. it may fall under a speculative attack. B. the value of its currency tends to appreciate too quickly. C. the exchange rate is likely to spiral upward, out of control. D. All of these statements are true.
Another term for the total quantity of output is
A) average product. B) marginal product. C) total product. D) average variable product.