If the Consumer's Income and All Prices Simultaneously Double, Then

question 178

Multiple Choice

If the consumer's income and all prices simultaneously double, then the optimum consumption bundle will

• A)shift outward relative to the original optimum.
• B)move leftward along the original budget constraint.
• C)not change.
• D)shift inward relative to the original optimum.

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Definitions:

Mudflows

Rapid downhill movement of water-laden earth materials, primarily composed of fine-grained soils and clays, which can cause significant erosion and damage.

Pyroclastic Flow

A hot, fast-moving and deadly mixture of gases, ash, and volcanic material produced by explosive eruptions.

Scoria

A highly vesicular, dark colored volcanic rock that may or may not contain crystals, typically formed from the cooling of lava.

Tephra

Volcanic material ejected into the air during an eruption, including ash, bombs, and blocks, which can affect wide areas downwind of a volcano.