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:

Sick Pay Payable

A liability account that represents the amount of sick pay owed to employees but has not yet been paid.

Notes Payable

Liabilities representing amounts borrowed by a company that must be repaid, often with interest, as evidenced by a promissory note.

Notes Payable

A financial obligation represented by a written promise to pay a certain amount on a specific future date or dates, typically encompassing loans or credit extended by one party to another.

Contra Account

An account that is used to offset another account on the balance sheet, such as accumulated depreciation for fixed assets.