Refer to the budget line shown in the diagram. Given the same money income, reductions in the prices of both products C and D will:
A. shift the budget line outward on the horizontal axis but leave it anchored at "10" on the
vertical axis.
B. shift the budget line to the left.
C. shift the budget line to the right.
D. have no effect on the budget line.
C. shift the budget line to the right.
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Define the concept of the real exchange rate and explain how it differs from the nominal exchange rate
What will be an ideal response?
The U.S. government need never default on its debt because
a. it can easily nationalize banks, who own all the debt, and then owe it to itself. b. it can raise the funds it needs to repay by taxation, and it can print money to repay. c. it owes the debt to itself, and it can always ignore a demand for repayment. d. it can simply reduce spending enough to generate funds to repay its debt.
An increase in the number of buyers in a particular market for a good will result in a ___________________ for that good
A) movement up along the demand curve B) movement down along the demand curve C) leftward shift in the demand curve D) rightward shift in the demand curve
If demand increases while supply simultaneously decreases, then the equilibrium quantity
A. can never change. B. always increases. C. always decreases. D. None of these