Suppose a Consumer Can Purchase Only Two Goods, Pasta and Cheese

question 58

Multiple Choice

Suppose a consumer can purchase only two goods, pasta and cheese. Let the quantity of pasta be measured on the vertical axis and the quantity of cheese be measured on the horizontal axis. If the price of pasta falls, with no change in the price of cheese or in the consumer's money income, then the budget line for the consumer will shift

• A) outward parallel to the existing budget line.
• B) away from the origin and become steeper.
• C) away from the origin and become flatter.
• D) toward the origin and become steeper.
• E) toward the origin and become flatter.

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Definitions:

Urban Life

Aspects and characteristics of living in densely populated, highly developed areas known as cities or towns.

Sociologists

Researchers in the social sciences focusing on the examination of human societal structures, their interrelations, and the dynamic processes that maintain or alter these structures.

Preindustrial Cities

Urban areas that existed before the widespread industrialization, characterized by limited technological development and simpler forms of social organization.

Industrial Cities

Urban centers that developed during and after the industrial revolution, characterized by the concentration of factories and mass production.