Hilda buys only cauliflower, Qc, and geraniums, Qg. The equation for Hilda's initial budget line is $40 = $2 × Qc + $4 × Qg
If Hilda's income increases by $20, the price of cauliflower decreases by $1, and the price of geraniums increases by $1, the equation of her new budget line is ________. A) $60 = $1 × Qc + $5 × Qg
B) $60 + $1 × Qc = $5 × Qg
C) $0 = $60 + $1 × Qc + $5 × Qg
D) $60 = $5 × Qc - $1 × Qg
A
You might also like to view...
Which of the following is an example of a discretionary fiscal policy action?
A) increasing government spending to deal with a recession B) a decrease in tax revenues as taxpayers' incomes decrease C) increasing the minimum wage rate D) raising regulations in the health care industry
Which of the following is an example of depreciation?
a. falling stock prices b. the retirement of several employees c. computers becoming obsolete d. All of the above are examples of depreciation.
The Smoot-Hawley Tariff
A) lowered U.S. tariffs by 50 percent following World War II. B) was passed by the U.S. Congress following the Civil War as a means of increasing government revenue. C) was passed by the U.S. Congress upon a recommendation made by the General Agreement on Tariffs and Trade (GATT) in 1948. D) raised average tariff rates by over 50 percent in the United States in 1930.
Explain how the invisible hand delivers an efficient market outcome
What will be an ideal response?