Assume the Quantity of Good X Is Measured on the Horizontal

question 62

Multiple Choice

Assume the quantity of good X is measured on the horizontal axis and the quantity of good Y on the vertical axis. Initial prices are PX = $5 and PY = $10. The consumer's income is $100. If PY increases to $20, then

• A) the budget line will rotate to the left across the horizontal axis, slope remaining constant.
• B) the entire budget line shifts to the left with its slope changing from 1/2 to 1/4 (in absolute values).
• C) the entire budget line will shift to the right.
• D) the budget line will rotate to the right down the horizontal axis with the slope changing from 1/4 to 1/2 (in absolute values).
• E) the budget line will rotate to the left down the vertical axis with the slope changing from 1/2 to 1/4 (in absolute values).

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Definitions:

Syntax

The set of rules, principles, and processes that govern the structure of sentences in any given language, including word order.

Mean Length

Typically refers to the average length of a set of objects or figures, calculated by dividing the total length by the number of items.

Language Progress

The development or improvement in understanding, speaking, reading, or writing a language over time.

Pounds

A unit of weight commonly used in the United States, equivalent to 0.453592 kilograms.