The curve that shows how the best affordable consumption bundle changes as the price of a good changes (holding the consumer's income, preferences and all other prices fixed) is called
A. a price-consumption curve.
B. an individual demand curve.
C. an income-consumption curve.
D. a budget line.
A. a price-consumption curve.
You might also like to view...
All else equal, when oil prices decrease, oil exploration processes like hydraulic fracturing become less advantageous for oil companies, and this will ________ proven reserves of oil and ________ the number of years it will take to deplete the stock
of oil. A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
When unions raise wages beyond what productivity increases would permit,
A) more union workers are employed. B) there are higher wages for all union members. C) there is a redistribution of income from low- to high-seniority workers. D) nonunion workers wages in the economy also increase.
The Reagan administration's experiment with supply-side economics produced a historic period of economic expansion that was accompanied by:
a. falling real interest rates. b. high unemployment rates. c. a dramatic increase in the federal government's budget deficit. d. a reduction in the U.S. trade deficit. e. All of the above.
The "ceteris paribus" clause in the law of demand allows which of the following factors to change?
A. consumer tastes and preferences B. prices of other goods C. expectations D. price of the good demanded