Assume That Anna Buys Peanut Butter and Bread

question 11

Multiple Choice

Assume that Anna buys peanut butter and bread.If the price of peanut butter falls,then

• A)One end of her budget constraint will move away from the origin.
• B)Her entire budget constraint will shift toward the origin.
• C)Her entire budget constraint will shift away from the origin.

---

Definitions:

Liability

A financial obligation of a business that it is required to repay in the future.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing what the owners own outright in the company.

International Standards

Guidelines and specifications established to ensure consistency and quality in products, services, and processes worldwide.

IASB

Stands for the International Accounting Standards Board, which is an independent, private-sector body that develops and approves International Financial Reporting Standards (IFRS).