The Income Effect of a Price Change Is Depicted by

question 149

Multiple Choice

The income effect of a price change is depicted by

• A)a parallel shift of the budget constraint at the old set of prices.
• B)a parallel shift of the budget constraint at the new set of prices.
• C)a movement along the budget constraint holding the level of satisfaction constant.
• D)not observable and is therefore neither a shift nor a change in the slope of the budget constraint.

---

Definitions:

Duty Of Care

An obligation to ensure the safety or well-being of others through a reasonable level of attention and caution.

Business Judgment Rule

A legal principle that protects company directors and officers from liability for decisions made in good faith and believed to be in the best interest of the company.

Indemnified

Protected against financial loss or compensated for loss or damage, often through insurance or indemnity clauses in contracts.

Litigation

The legal process of resolving disputes or claims between parties in court.