Suppose a Consumer Only Purchases Food and Clothing, and Food

question 102

Multiple Choice

Suppose a consumer only purchases food and clothing, and food is plotted along the horizontal axis of the consumer's indifference map. If the price of clothing increases and the price of food and income do not change, then the budget line changes by rotating:

• A) counter-clockwise about the fixed vertical axis intercept.
• B) clockwise about the fixed vertical axis intercept.
• C) counter-clockwise about the fixed horizontal axis intercept.
• D) clockwise about the fixed horizontal axis intercept.
• E) none of the above

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Definitions:

Synthesis

The process of combining simpler substances chemically to form a more complex substance.

Starting Material

The specific substances or compounds that undergo chemical reactions to produce the desired product.

Reaction

A process that results in the transformation of chemical substances into other substances through the breaking and forming of chemical bonds.

Ethyl Formate

An ester formed from formic acid and ethanol, known for its use as a solvent and in the manufacture of flavors and fragrances.