Figure 21-3 in Each Case, the Budget Constraint Moves from BC-1 to BC-1

question 74

Multiple Choice

Figure 21-3
In each case, the budget constraint moves from BC-1 to BC-2.
-Refer to Figure 21-3. Which of the graphs in the figure reflects a decrease in the price of good Y only?

• A)graph a
• B)graph b
• C)graph c
• D)graph d

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Definitions:

Net Income

The financial metric representing the company's profit calculated by removing all relevant expenses from its total revenue.

Earnings Per Share

A financial metric calculated by dividing a company's net income by the number of its outstanding shares of common stock, indicating the amount of profit attributed to each share.

Operating Segment

An operating segment is a component of a company that engages in business activities from which it can earn revenues and incur expenses, and whose operating results are regularly reviewed by the company's management.

External Customers

Individuals or businesses outside of the company who purchase its products or services, as opposed to internal stakeholders.