Author Question: Suppose there are two goods (X and Y). On a traditional graph of a budget line a tripling of all ... (Read 18 times)

olgavictoria · **on:** Jul 1, 2018

Suppose there are two goods (X and Y). On a traditional graph of a budget line a tripling of all prices and incomes will
a. alter the slope of the budget line only.
b. alter the slope of the budget line as well as the Y-intercept.
c. alter the slope of the budget line as well as the X-intercept.
d. leave the budget line unaltered.

Question 2

A problem with using the price of a product similar to the intermediate good sold on the market is
a. the market price includes a margin above marginal cost
b. the product on the market may include costly features your downstream division does not use
c. the product on the market may be cheap because it is not as high of quality as your downstream division uses
d. all of the above