Assume Bryce's Budget Constraint Is Represented by Line C in the Graph

question 98

Multiple Choice

Assume Bryce's budget constraint is represented by line C in the graph shown. Which of the following would cause Bryce's budget constraint to shift to line A?

• A)Bryce's income increases.
• B)Bryce's income decreases.
• C)Bryce's preferences for books and movies decrease.
• D)Bryce's preferences for books and movies increase.

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Definitions:

Cumulative

Refers to the aggregate amount that has been gathered or accumulated over time.

Par Value

A nominal or face value assigned to a share of stock or a bond by the issuing company, often unrelated to its market value.

Common Stock

A type of security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Partnership

A Partnership is a legal form of business operation between two or more individuals who share management and profits.