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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Personal income does not include
a. transfer payments. b. capital consumption allowance. c. dividends. d. interest income.
The amount that a seller is paid for a good minus the seller’s actual cost is called:
a. producer surplus. b. consumer surplus. c. total surplus. d. demand surplus.
Which of the following is most likely sold in a monopolistically competitive market?
a. wheat b. cable TV programming c. a share of McDonald's stock d. sunglasses
Fiat monies, but not commodity monies, can be used as a store of value.
Answer the following statement true (T) or false (F)