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

question 36

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 consumer's income rises to €48, then what will happen to the consumer's budget line?

• A) It move outwards so that it now intersects the vertical axis at 6 pizzas per week and the horizontal axis at 24 milk shakes per week.
• B) It would not change.
• C) It would move inwards so that it now intersects the vertical axis at 3 pizzas per week and the horizontal axis at 8 milk shakes per week.
• D) It would rotate in a clockwise direction around the point at which it intersects the horizontal axis.

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Definitions:

Terminated

The end of an employee's employment due to dismissal or discharge by the employer, often for cause or due to organizational changes.

Apparent Authority

The appearance or assumption of authority based on the actions or statements of the principal, leading third parties to believe that a representative has authority to act.

Bound

To be legally or morally obligated; often referring to the commitments made in a contract or agreement.

Purchased

Purchased refers to the acquisition of goods or services in exchange for money or other consideration.