A decrease in the price of the good on the horizontal axis rotates the budget constraint counterclockwise
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
An increase in supply will cause the equilibrium price to ________ and the equilibrium quantity to ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
How might the globalization of financial markets affect the role of financial frictions in business fluctuations?
What will be an ideal response?
In the absence of any legally binding enforcement mechanism, individual cartel producers may find it advantageous to cheat on the agreements and engage in secret price concessions
a. true b. false
The market system is said to be characterized by "consumer sovereignty." This is because:
A. A sovereign government determines which consumer goods will be produced B. The prices of consumer goods are regulated by a sovereign government C. Firms must match their production decisions to the consumers' choices D. Consumer goods are considered to be more important than capital goods