Assume Jayden's Budget Constraint Is Represented in the Graph Shown

question 80

Multiple Choice

Assume Jayden's budget constraint is represented in the graph shown. Suppose Jayden initially has $24 to spend on these items. If Jayden's income decreases to $12, which of the following is true?

• A)One possible new consumption bundle is 2 cases of soda and 3 gallons of milk.
• B)The new x-intercept of the budget constraint will be 3, and the new y-intercept will be 2.
• C)The slope of the budget constraint will decrease.
• D)The budget constraint will shift, but it is impossible to know the new intercepts.

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Definitions:

Lateral Differentiation

The way in which an organization segregates its operations and responsibilities across the same hierarchical level.

Standardization

The process of implementing and developing technical standards to ensure consistency and compatibility within products, services, or processes.

Formalization

The degree to which the organization has official rules, regulations, and procedures.

Differentiation

The process of distinguishing a product or service from others to make it more attractive to a particular target market.