The above figure shows Bobby's indifference map for juice and snacks. Assuming income remains unchanged, when the budget line rotates out, the expenditure on snacks
A) increases.
B) decreases.
C) does not change.
D) Not enough information
B
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Which of the following statements accurately expresses the assumptions on which new Keynesian and new classical theory are based? a. New Keynesian economics assumes that the economy can reach equilibrium below thenatural rate of unemployment, whereas new classical economics assumes thatmacroeconomic equilibrium is always at the natural rate of unemployment
b. New Keynesian economics maintains that government intervention is unnecessary,whereas classical economics supports an active government role. c. New Keynesian economics assumes that the long-run Phillips curve is vertical,whereas new classical economics views the long-run Phillips curve as horizontal. d. New Keynesian economics assumes that all prices are flexible, whereas new classical economics applies a fixed-price model. e. New Keynesian economics emphasizes short-run reductions in inflation rates, whereas new classical economics focuses on short-run reductions in the unemployment rate.
Of all the cars made in the United States, General Motors makes only ______ percent of them.
Fill in the blank(s) with the appropriate word(s).
Because of the scarcity of resources, every country must answer the three basic economic questions: ________________; ___________________; and _________________.
Fill in the blank(s) with the appropriate word(s).
Consider two industries, industry W and industry X. In industry W there are five companies, each with a market share of 20% of total sales. In industry X, there are six companies. One company has a 50% market share and each of the other five firms has a
market share of 10%. a. Calculate the four-firm concentration ratio for each industry. b. Calculate the Herfindahl-Hirschman Index (HHI) for each industry. c. What do the values of the two concentration measures imply about the degree of market power in the two industries?