A decrease in the price of good Y will have what effect on the budget line on a normal X-Y graph?
A. Decrease the horizontal intercept
B. Parallel inward shift of the line
C. Parallel outward shift of the line
D. Increase the vertical intercept
Answer: D
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Use the following table for Country X to answer the next question. Column 1 of the table is the world price of a product, Column 2 is the quantity demanded domestically (Qdd), and Column 3 is the quantity supplied domestically (Qsd). Assume the small-country model is applicable.PriceQddQsd$5.002004004.002503503.003003002.003502501.00400200If Country X opens itself up to international trade, at what world price will it begin importing some units of the product?
A. Any price above $3.00 B. Any price below $3.00 C. Any price below $5.00 D. Any price above $5.00
Refer to above figure. The lowest specific tariff which would be considered prohibitive is ________
Fill in the blank(s) with correct word
If all conditions for a perfectly competitive market are met
A) firms face sunk cost when entering the market. B) firms' demand curves are horizontal. C) the market demand curve is horizontal. D) the firms' demand curves are downward-sloping.
Why is P3 below P2 instead of above it?
a. New producers enter the industry and supply expands, driving down price.
b. Increased demand for inputs causes input prices to rise and output prices to fall.
c. Quantity decreases overall but demand drops, driving down price.
d. Demand shifted too far right and could not be sustained, so it shifted left again.