Refer to Goods X and Y. Which of the following can cause a parallel, outward shift in the budget line?
Assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions.
a. A rise in the consumer's income.
b. A rise in the marginal value of X in terms of Y.
c. A fall in the price of good X.
d. A fall in the price of good Y.
a. A rise in the consumer's income.
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Holding all else constant, an increase in the preferences of Americans for Mexican goods will ________ the supply of dollars in the foreign exchange market and ________ the equilibrium Mexican peso/U.S. dollar exchange rate.
A. decrease; decrease B. decrease; increase C. increase; increase D. increase; decrease
If an individual borrows $100, and pays back $100 after a year to settle his loan, it implies that the rate of interest is:
A) 0 %. B) 100%. C) 1%. D) 10%.
An ATS account
A) converts a corporation's checking account balance at the end of the day into an overnight repurchase agreement. B) is the name given to NOW accounts outside of New England. C) are negotiable certificates of deposit of less than $100,000. D) were used during the Great Depression by depositors who had lost faith in conventional checking accounts.
Each point on the supply curve shows the: a. amount that people want to buy at that price
b. quantity supplied at that price. c. productive capacity of an individual producer. d. the amount producers want to sell to buyers of different income levels.