Figure 21-2 in Each Case, the Budget Constraint Moves from BC₁ to BC₁

question 98

Multiple Choice

Figure 21-2
In each case, the budget constraint moves from BC₁ to BC₂.
Graph (a)
Graph (b)
Graph (c)
Graph (d)
-Refer to Figure 21-2. Which of the graphs in the figure reflects an increase in the price of good X only?

• A)Graph (b)
• B)Graph (a)
• C)Graph (c)
• D)Graph (d)

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Definitions:

Straight Salary

A fixed regular payment made by an employer to an employee, regardless of the employee's performance or hours worked.

Exclusive Distribution

A distribution strategy where a supplier grants exclusive rights to a single wholesaler or retailer to sell its products in a specific territory.

Intensive Distribution

Intensive distribution is a strategy where a company makes its product available through as many outlets as possible to maximize coverage and product availability.

Selective Distribution

A type of distribution strategy that involves placing products in selected retail outlets, rather than mass marketing or exclusive distribution.