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.
Answer: B
You might also like to view...
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
When aggregate expenditure increases, why is there a multiple expansion of income and real GDP? Trace the multiplier effect through the first four rounds when there is an increase in aggregate expenditure of $40 billion and the marginal propensity to consume is 0.75
Explain why producers rather than consumers may be the beneficiaries of regulation. Does the evidence support this view?
Baumol and Blinder argue that oligopolies are interdependent firms. What do they mean by this? Give three examples of the types of interdependence which might occur