On a Graph We Draw a Consumer's Budget Constraint, Measuring

question 291

Multiple Choice

On a graph we draw a consumer's budget constraint, measuring the number of apples on the horizontal axis and the number of light bulbs on the vertical axis. If the slope of the budget constraint is -2, then

• A)an apple costs twice as much as a light bulb.
• B)the opportunity cost of a light bulb is 2 apples.
• C)the opportunity cost of an apple is one-half of a light bulb.
• D)All of the above are correct.

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Definitions:

Supply Curve

A graphical representation showing how the quantity of goods supplied by producers changes in response to different price levels.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing and able to purchase at different prices.

Actual Price

The actual price is the final price at which a transaction takes place in the market, reflecting discounts, promotions, and real-time market conditions.

Outdoor Holiday Lighting

Decorative lighting used externally on buildings and in gardens to celebrate holidays, especially festive periods like Christmas.