Suppose the Price of a Pizza Is €8, the Price

question 39

Multiple Choice

Suppose the price of a pizza is €8, the price of a milk shake is €2, and the consumer's weekly income is €32. Suppose we have constructed the consumer's budget line with pizzas on the vertical axis and milk shakes on the horizontal axis. Given this information, if the price of a milk shake doubles to €4, then what will happen to the budget line?

• A) It will move so that it intersects the horizontal axis at 16 milk shakes per week.
• B) Its slope rises to -1/2.
• C) It will move so that it intersects the horizontal axis at 8 milk shakes per week.
• D) It will shift inward but remain parallel to its original position.

---

Definitions:

Performance Orientation

A focus on achieving success and demonstrating competence in task performance.

Fear of Failure

The intense worry or dread of not meeting a set standard of performance or not achieving success.

Drive Accounts

Explanations that attribute behavior to internal states of arousal or need that propel individuals towards specific goals.

Approach Accounts

Theories or explanations that focus on the reasons or motivations behind individuals moving towards a goal or object.