A Leftward Shift of a Consumer's Budget Line to a Position

question 242

Multiple Choice

A leftward shift of a consumer's budget line to a position parallel with the original one could indicate that the:

• A)price of one product has decreased in relation to the other.
• B)prices of both products have decreased in the same proportion.
• C)marginal utilities derived from both products have decreased.
• D)consumer's money income has increased but the prices of both products have increased proportionately more.

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Definitions:

FIFO Method

"First In, First Out," an inventory valuation method that assumes goods are sold in the order they are acquired.

Inventory Costing

The method used to value inventory, including techniques like FIFO (First In, First Out), LIFO (Last In, First Out), and weighted average cost.

FIFO Method

"First In, First Out" method of inventory valuation where the oldest inventory items are recorded as sold first.