Figure 21-4 in Each Case, the Budget Constraint Moves from BC-1 to BC-1

question 210

Multiple Choice

Figure 21-4
In each case, the budget constraint moves from BC-1 to BC-2.
-Refer to Figure 21-4. Which of the graphs in the figure could reflect a simultaneous increase in the price of good X and decrease in the price of good Y?

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

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Definitions:

Interest Rate

The cost of borrowing money or the return for investing money, typically expressed as a percentage of the principal.

Inventory

Inventory encompasses all the goods and materials a business holds for the purpose of resale, production, or utilization.

Equipment

Tools or machinery used for specific purposes, especially in the context of manufacturing or industrial operations.

Goods and Services

The output of an economy that satisfies consumer or business needs, where goods are physical items and services are intangible activities or benefits.