Consider the Following Graphs Depicting Budget Constraints, Then Answer the Questions

question 15

Essay

Consider the following graphs depicting budget constraints, then answer the questions below.

a. Which panel shows an increase in the price of X?
b. Does panel C show an increase or decrease in the price of good Y?
c. Which panel shows an increase in consumer income, if prices remain unchanged?
d. Which panel - if any - shows an equally propionate decrease in the price of both goods?

---

Definitions:

Ordered

A directive issued by a court or other authority mandating or forbidding some action.

Allonge

Accompanying a negotiable instrument, a piece of paper that provides room for an endorsement if no room is available on the instrument itself.

Instrument

A legal document that formalizes an agreement or right, such as a contract, will, or financial instrument.

Endorsement

The act of signing one's name on the back of a check or other negotiable instrument to legally transfer its ownership.