If the price of one good increases while the price of the other good and the consumer's income remain unchanged, what will happen to the budget line?
A) The budget line rotates inward from the intercept on the axis of the good that did not change in price.
B) The budget line rotates outward from the intercept on the axis of the good that did not change in price.
C) The budget line shifts inward without a change in slope.
D) The budget line shifts outward without a change in slope.
Question 2
Betty consumes good x and good y. If the price of x = 3 and the price of y = 4, then
A) an extra unit of x costs 4/3 units of y.
B) an extra unit of y costs 4/3 units of x.
C) an extra unit of x costs 3/4 units of y.
D) Both B and C.
Functional MRI Scans These scans of human brains show localized average increases in neural activity
Good computer skills are now required to be a successful member of an office staff.
What's Your BMI? As your BMI increases, you are more likely to be overweight or obese
Kidney beans, steak, and iron-fortified bread and cereal are good sources of iron
A car wash reduced the price of a basic wash as a promotion and test of the market. With the ...
Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in ...