The figure above shows Sam's budget line. Which of the following would result in Sam's budget line rotating inward and not changing its vertical intercept?
A) a decline in his preference for coffee
B) a fall in the price of a gallon of gasoline
C) a decrease in Sam's income
D) an increase in the price of a pound of coffee
D
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What is meant by "excess capacity"? How does it relate to consumer utility?
What will be an ideal response?
The finite nature of the economy's resource base:
a. will be solved if only we would learn to conserve. b. is only a problem in developing countries. c. will be solved as technology advances. d. will always be with us.
In a competitive economy, the market system can still fail to produce the efficient level of output due to side effects called ______.
a. externalities b. subsidies c. signals d. warranties
When aggregate expenditure=GDP,
What will be an ideal response?