What Would Happen to the Budget Line If the Price

question 13

Multiple Choice

What would happen to the budget line if the price of orange juice increased and orange juice is measured on the vertical axis?

• A)It would shift to the right.
• B)It would rotate outward along the horizontal axis.
• C)It would rotate inward along the horizontal axis.
• D)It would rotate outward along the vertical axis.
• E)It would rotate inward along the vertical axis.

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Definitions:

Operating Costs

Expenses associated with the day-to-day functions of a business, excluding cost of goods sold but including costs like rent, utilities, and payroll.

High Pressure Pump

A device that increases the pressure of liquids, commonly used in industries requiring the precise control of fluids under high pressure.

Selling Price

The amount a buyer pays to acquire a product or service from a seller.

Value-Based Pricing

A pricing strategy where the price of a product or service is determined by the perceived value to the customer rather than the cost of production.