Figure 5-5 shows a consumer budget line for French fries and hamburgers. The household allocates a budget for these two goods. Suppose that the price of an order of French fries is $2, what is household income?
A. $1
B. $2
C. $5
D. $10
Answer: D
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Indicate whether the statement is true or false
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A) creating synergies B) increasing the required areas of managerial expertise C) increasing flexibility by eliminating a contract with an input supplier D) reducing information costs
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A) a decrease in the demand for that product. B) a decrease in quantity supplied of that product C) a decrease in the supply of that product. D) an increase in the supply of that product.