Budget Lines The Following Questions Refer to the Following Diagram, Which Shows

question 14

Multiple Choice

Budget Lines

The following questions refer to the following diagram, which shows the budget lines faced by a consumer last year and this year.

-Refer to Budget Lines.Which of the following changes is consistent with the situation shown in the diagram?

• A) The consumer's income fell.
• B) The relative price of good X in terms of good Y fell.
• C) The absolute price of good X rose,and the absolute price of good Y fell.
• D) The absolute price of both goods rose,with the price of good X rising by the higher percentage.

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Definitions:

Encoding

The initial process of converting information into a form that can be processed and stored in memory.

Retrieval

The method of retrieving data from memory storage and bringing it back into conscious recognition.

Storage

Storage refers to the process or space used for keeping or preserving information, goods, or materials, ensuring they are protected and retrievable when needed.

Parallel Processing

The ability of the brain to simultaneously process incoming stimuli of differing quality, a fundamental capacity for most cognitive tasks.