If the Consumer's Income and All Prices Simultaneously Decrease by One-Half

question 368

Multiple Choice

If the consumer's income and all prices simultaneously decrease by one-half, then the optimum consumption will

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

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Definitions:

Visual Tracking

The ability to smoothly follow moving objects with one's eyes.

Visual Acuity

The clarity or sharpness of vision, often measured by one's ability to discern letters or numbers at a standardized distance.

Visual Clarity

The sharpness and clearness of vision, enabling one to see fine details.

Visual Perception

The ability to interpret the surrounding environment by processing information contained in visible light.