When the Price of One Good Changes, While the Prices

question 46

Multiple Choice

When the price of one good changes, while the prices of all other goods stay the same, the change in relative prices:

• A)is reflected in a change in the slope of the budget constraint.
• B)can be thought of as a change in the opportunity costs of each good.
• C)is reflected in a change in the marginal utility per dollar spent on each good.
• D)All of these statements are true.

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Definitions:

MP3 Players

Portable digital devices designed to play music files in MP3 format, allowing users to listen to music on the go.

Quantity Supplied

The quantity of a product or service that sellers are ready and able to offer for sale at a specific price during a certain time frame.

Spinach Enchiladas

A dish comprising tortillas rolled around a filling, typically of spinach and cheese, and covered with a chili pepper sauce.

Supply

Supply is the total amount of a product or service that is available to consumers at a given price range and time period.