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.

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Definitions:

Fifth Amendment

An amendment to the US Constitution that provides several rights relevant to both criminal and civil legal proceedings, including protections against self-incrimination and double jeopardy.

Due Process Clause

A constitutional guarantee found in the Fifth and Fourteenth Amendments of the U.S. Constitution, assuring all citizens fair treatment through the judicial system.

First Amendment

The amendment to the United States Constitution prohibiting the government from making laws that infringe on the freedom of speech, religion, press, assembly, and petition.

Deceptive Advertising

Marketing practices that mislead or deceive consumers significantly enough to affect purchasing decisions.