A Candy Bar Sells for 50 Cents, Video Games Are

question 90

Multiple Choice

A candy bar sells for 50 cents, video games are 25 cents each, the horizontal (candy) intercept of Ann's budget line is 12, and the vertical (video game) intercept of Ann's budget line is 24.Which of the following best describes what would happen to the budget line if Ann's income decreased?

• A)It would shift rightward to a parallel position.
• B)It would shift rightward to a nonparallel position.
• C)It would shift leftward to a parallel position.
• D)It would shift leftward to a nonparallel position.
• E)Nothing.

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Definitions:

Horizontal Brand Extension

A strategy where a brand introduces new products in the same product category.

Particle Board

An engineered wood product made from wood chips, sawmill shavings, or even sawdust, and a synthetic resin or other suitable binder, which is pressed and extruded.

Diversification Strategy

A growth strategy where a business enters into a new market or industry which it is not currently in, while also creating a new product for that new market.

Brand Recognition

Brand recognition is the extent to which consumers can correctly identify a brand through its visual indicators like logos, colors, packaging, or advertising, without the brand name being mentioned.