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:

Leased Equipment

Assets that are rented under a contract for a specified period of time, often with terms that specify usage rights and requirements.

GAAP

A collection of commonly followed accounting rules and standards for financial reporting, used primarily in the United States.

Expense Recognition

Expense Recognition is an accounting principle that dictates the specific conditions under which expenses are recognized and reported in financial statements.

Revenue Recognition

The accounting principle dictating how and when revenue is recognized on the financial statements, ensuring it reflects the transfer of promised goods or services to customers.