If a consumer's income decreases, what will happen to the budget line?
A. It will become steeper.
B. It will shift outward.
C. It will become flatter.
D. It will shift inward.
Answer: D
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Crowding in is the result of
A. Rising unemployment. B. Rising government borrowing. C. Falling interest rates. D. Declining business confidence.
Combinations in restraint of trade are prohibited by
A. the Sherman Act. B. The Clayton Act. C. the Federal Trade Commission Act.
Imposing a minimum wage above the equilibrium wage:
A. makes some workers worse off. B. increases the size of the total wage bill. C. makes all workers better off. D. lowers labor costs.
Considering the concept of cross-price elasticity, if two goods are substitutes:
A. an increase in the price of one causes an increase in the demand for the other. B. an increase in the price of one causes a decrease in the demand for the other. C. the cross-price elasticity is negative. D. a decrease in the price of one causes an increase in the demand of the other.