If the price of one good changes, what happens to the relative price and the slope of the household's budget line?
What will be an ideal response?
A relative price is the price of one good divided by the price of another good. For example, the magnitude of the slope of the budget line (Pmovie/Psoda) is the relative price of a movie in terms of soda. This relative price shows how many sodas must be forgone to see an additional movie. A fall in the price of the good on the horizontal (vertical) axis increases the total affordable quantity of that good, decreases its relative price, and decreases (increases) the magnitude of the slope of the budget line.
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A) capital per person B) population C) real GDP D) real GDP per person E) the standard of living
Which of the following would NOT be considered a capability in the capabilities approach?
A. To be able to find secure and meaningful work B. To be able to afford to travel freely C. To live free of the fear of violence D. All of these are considered capabilities
A rational person can have a negatively-sloped labor supply curve
a. True b. False Indicate whether the statement is true or false
Which of the following statements about inputs is correct?
a. A forest is an example of a natural resource; it is also an example of a renewable resource. b. There is no distinction between human capital and technological knowledge. c. Human capital is a non-produced factor of production. d. Physical capital is a non-produced factor of production.