Goods X and Y

question 30

Multiple Choice

Goods X and Y

For the following questions, assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions.

-Refer to Goods X and Y.Which of the following can cause a parallel,outward shift in the budget line?

• A) A rise in the consumer's income.
• B) A rise in the marginal value of X in terms of Y.
• C) A fall in the price of good X.
• D) A fall in the price of good Y.

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Definitions:

General Personal Jurisdiction

A doctrine permitting adjudication of any claims against a defendant regardless of whether the claim has anything to do with the forum.

Adjudication

The legal process of resolving a dispute or deciding a case, carried out by a court or an official tribunal.

Claims

Formal requests or demands, often in the context of insurance or legal arenas, for payment due to loss, injury, or damage.

Export

The process of sending goods or services to another country for sale or trade.