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:

Selection

The process of choosing from a number of options or individuals.

Responsibilities

Duties or tasks that one is required or expected to perform or fulfill.

Organization Afford

The financial capability of an organization to undertake certain projects, initiatives, or investments.

Personal Goals

Individual objectives or ambitions that a person aims to achieve, which can be related to their career, education, personal development, or other areas of life.