Bill Consumes Apples and Bananas

question 68

Multiple Choice

Bill consumes apples and bananas.Apples are measured on the vertical axis and bananas are measured on the horizontal axis.Bill's income doubles,the price of apples doubles,and the price of bananas triples.Bill's budget line

• A)remains unchanged.
• B)shifts rightward and the slope does not change.
• C)shifts rightward and becomes steeper.
• D)shifts rightward and becomes flatter.
• E)becomes steeper.

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Definitions:

Voluntary Export Restriction

A self-imposed limitation by exporting countries on the volume of their exports to another country, often to avoid stricter trade barriers.

Import Quota

A government-imposed limit on the quantity or value of goods that can be imported into a country, used to protect domestic industries from foreign competition.

Export Subsidy

A financial assistance given by the government to domestic companies to encourage them to sell their goods abroad.

Softwood Lumber

Timber from coniferous trees such as pine or spruce, often used in construction.