George Has a Weekly Income (I)of $50,which He Uses to Purchase

question 88

Multiple Choice

George has a weekly income (I) of $50,which he uses to purchase doughnuts (D) and coffee (C) .The price of a doughnut is $1 and the price of coffee is $2.50.Suppose George's income drops to $25 and the prices of doughnuts and coffee each fall to one-half their initial prices.One would expect George's budget line to:

• A)shift to the right.
• B)shift to the left.
• C)rotate around one of the axes,but we cannot tell which one.
• D)stay the same.

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Definitions:

Shift

A change or transition in position, direction, strategy, or approach, often used to describe alterations in work schedules, roles, or operational tactics.

Clients

Individuals or entities that receive professional services or advice from a company or professional.

Divisionalized Structures

A type of organizational structure where operations are segregated based on products, services, markets, or geographic areas.

Geographically Based

Pertaining to the physical location or region of something, often used to describe organizational units or market strategies based on geographical areas.