Assume initially that the price of X (measured on the horizontal axis) is $9 and the price of Y (measured on the vertical axis) is $4. If the price of X now declines to $6, the budget line will:
A. be unaffected.
B. shift outward on the vertical axis.
C. shift inward on the horizontal axis.
D. shift outward on the horizontal axis.
Answer: D
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Aggregate demand and supply curves have been widely used to analyze the performance of the macroeconomy. Figure 5-3 shows four diagrams that represent different changes in the macroeconomy. Choose the diagram that best represents the situations described in the following questions.Figure 5-3
Which graph in Figure 5-3 best represents the economic conditions of the American economy in 2001?
A. 1 B. 2 C. 3 D. 4
Last Tuesday you purchased 100 shares of Jitters Coffee Company, a corporation, for $25.00 per share. Unfortunately, the company went bankrupt later that same day
If the company still owed $1 million in debts after all assets have been liquidated and there are 1 million stockholders, what would be your personal loss from the remaining debt? A) $0 B) $1.00 C) $100.00 D) $1 million
Assuming short-run sticky prices, the same monetary policy result may be achieved by targeting the money supply or the nominal rate of interest whenever:
a. the demand for money is stable. b. interest income is not taxable. c. changes in the supply of money are small and predictable. d. real income is constant.
In the following econometric model, wage = ?0+ ?1educ + u , which of the following factors would not be contained in the term u ?
A. Experience (exper) B. Family background (fback) C. Innate ability (abil) D. Education (educ)