Assume the price of good Y with its quantity measured on the vertical axis is $100 and the price of good X with its quantity measured on the horizontal axis is $10 . If the consumer's budget is $500, then the absolute value of the slope of the budget line is:
a. 500.
b. 1/10.
c. 10.
d. 100.
b
You might also like to view...
Miniville is an isolated town located on the southern shore of Lake Condescending, a very large lake. The western edge of Miniville is adjacent to impassable mountains and there are no towns or businesses for many miles to the east. The 300 residents of Miniville are evenly distributed along 3 miles of shoreline on the lake, east of the mountains. Lake Shore Drive, the only street in town, provides access to Miniville's homes and businesses. All residents live between the lake and the street; businesses locate on the other side of the street. Lake Shore Drive is 3 miles long, and the points labeled A, B, and C are 1, 2, and 3 miles from the western end of Lake Shore Drive, respectively. All residents of Miniville shop at the store located closest to their homes. src="https://sciemce.com/media/4/ppg__rrr0818190951__f1q361g1.jpg" alt="" style="vertical-align: 0.0px;" height="117" width="538" />If one store is located at A and the other store is located at B:
A. exactly half of the people living east of B will shop at the store at B.
B. exactly half of the people living west of B will shop at the store at B.
C. all of the people living between A and the mountains will shop at the store at A.
D. some, but not all, of the people living east of B will shop at the store at B.
Other things remaining the same, the quantity of a good or service demanded will increase if the price of the good or service
A) rises. B) falls. C) does not change. D) rises or does not change. E) rises or falls.
An active deficit:
a. Is the portion of the government deficit that automatically helps a nation from falling further into a recession. b. Is always less than the actual deficit when a nation is currently below full employment. c. Is the difference between government spending and taxes at full employment. d. All of the above are true. e. None of the above is true.
If a competitive firm is losing money then it should:
A. always shut down. B. shut down if its losses are greater than total fixed costs. C. shut down if its total fixed costs are greater than losses. D. raise its price.