This graph shows three different budget constraints: A, B, and C.
If Bart has budget constraint A in the graph shown, what would cause his budget constraint to shift to B?
A. The price of soda has decreased.
B. The price of milk has increased.
C. Bart's income has decreased.
D. The price of soda has increased.
Answer: D
You might also like to view...
For a firm in a perfectly competitive market, price is
A) equal to both average revenue and marginal revenue. B) greater than marginal revenue but less than average revenue. C) equal to average revenue but greater than marginal revenue. D) less than both average revenue and marginal revenue.
Economic profit is defined as
a. price minus the sum of average fixed and marginal cost b. total revenue minus total implicit cost c. total revenue minus the average total cost d. total revenue minus the sum of implicit and explicit costs e. consumer surplus minus total explicit cost
The level of Real GDP and the price level always have a direct relationship
Indicate whether the statement is true or false
Suppose that Figure 7.4 shows a monopolist's demand curve, marginal revenue, and its costs. The monopolist would maximize its profit by charging a price of:
A. $35. B. $25. C. $20. D. $16.