Sarah Has an Income of $100

question 38

Multiple Choice

Sarah has an income of $100.She purchases 5 pizzas at $10 each and 10 subs at $5 each.Then the government taxes subs,and the price rises to $10 each.Simultaneously,the government gives Sarah a grant of $50 in income to make up for this change.As a result,Sarah's budget line

• A)has fewer affordable combinations of pizzas and subs.
• B)does not change.
• C)shifts leftward and parallel to the original budget line.
• D)shifts rightward and parallel to the original budget line.
• E)swivels around the original consumption choice.

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Definitions:

Part C

In specific contexts, this can refer to a section or segment of a larger document, plan, or legislation, detailing specific aspects or requirements.

Safety Stock

Extra inventory kept on hand to mitigate the risk of stockouts due to uncertainties in supply or demand.

MRP

Stands for Material Requirements Planning, a system for calculating the materials and components needed to manufacture a product.

Finished Assemblies

Finished Assemblies are completed products that have been assembled from individual components and are ready for sale or use.