Figure 10-10 -Refer to Figure 10-10. the Change in the Budget Constraint

question 107

Multiple Choice

Figure 10-10
-Refer to Figure 10-10. The change in the budget constraint from BC₁ to BC₂ implies

• A) the prices of DVDs and CDs have increased.
• B) income and the prices of DVDs and CDs have increased.
• C) the price of DVDs has increased and the price of CDs has decreased.
• D) the price of DVDs has decreased and the price of CDs has increased.

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Definitions:

Cash Dividends

Payments made by a corporation to its shareholders out of its profits or reserves in the form of cash.

Earnings per Share

A financial ratio calculated by dividing a company's net income by its number of outstanding shares of common stock.

Cash Dividend

A payment made by a company to its shareholders, usually as a distribution of profits.