If a Consumer Spent Their Entire Income on Chips and Cola

question 56

Multiple Choice

If a consumer spent their entire income on chips and cola, what would happen if the consumer's income were to double and the prices of chips and cola were also to double?

• A) The consumer's budget line would remain unchanged.
• B) The consumer's budget line would shift outward, but remain parallel to the original budget line.
• C) The consumer's budget line would shift inward, but remain parallel to the original budget line.
• D) The consumer's budget line would shift in an unpredictable way.

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Definitions:

Biological Motives

Innate impulses driving behavior, such as hunger, thirst, and the need for shelter, aimed at survival.

Long-Term Mechanisms

Strategies or processes that are employed over an extended period to manage or cope with tasks, changes, or stresses.

Social Motive

The underlying psychological drive that influences individuals to seek social connections and interactions.

Need for Rest

A physiological and psychological requirement for periods of rest or sleep to recover from activity and maintain health.