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

question 80

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 could reflect a simultaneous decrease in the prices of both goods?

• A)Only graph (a)
• B)Only graph (d)
• C)Graph (b) or graph (c)
• D)None of the graphs in the figure can reflect this.

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Definitions:

Good Standing

A status indicating that an entity or individual is up-to-date with the fulfillment of legal, financial, or administrative obligations.

Annual Dividend

An annual dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits on a yearly basis.

De Jure Corporation

A corporation that has fully complied with all statutory requirements for incorporation and is legally recognized.

Conditions Precedent

Specific conditions outlined in a contract that must be met before the contract becomes legally binding or before a party is obligated to perform their part of the agreement.