Goods X and Y

question 4

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.When the price of good X rises,what happens to the budget line?

• A) The budget line shifts in,with no change in the slope.
• B) The budget line becomes flatter,and the horizontal intercept moves to the right.
• C) The budget line becomes steeper,with no change in the vertical intercept.
• D) The budget line pivots about the horizontal intercept,with the vertical intercept moving up.

---

Definitions:

Jargon

Specialized terminology associated with a particular field, profession, or group, often difficult for outsiders to understand.

Non-verbal Communication

The process of conveying a message without the use of words, through body language, gestures, facial expressions, and other physical cues.

Downsizing

The process by which a company reduces its number of employees to cut costs, often leading to organizational restructuring.

Jargon

Specialized or technical language used by a particular group or profession that may be difficult for outsiders to understand.