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

question 419

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 an increase in the price of good Y only?

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

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Definitions:

Independent

Not influenced or controlled by others; acting freely.

P(A|B)

The likelihood of event A happening provided that event B has taken place.

P(B|A)

The probability of event B occurring given that event A has already occurred.

P(A and B)

The probability of both event A and event B occurring in a combined manner.