Author Question: An increase in an individual's income without changing relative prices will a. rotate the budget ... (Read 27 times)

lilldybug07 · **on:** Jul 1, 2018

An increase in an individual's income without changing relative prices will
a. rotate the budget constraint about the X-axis.
b. shift the indifference curves outward.
c. shift the budget constraint outward in a parallel way.
d. rotate the budget constraint about the Y axis.

Question 2

When a transfer price is set lower
a. the profits of the division producing the intermediate product will rise
b. the profits of the division producing the intermediate product will fall
c. the costs of the division producing the intermediate product will rise
d. the costs of the division producing the intermediate product will fall