Suppose the Price of a Pizza Is R80, the Price

question 51

Multiple Choice

Suppose the price of a pizza is R80, the price of a milk shake is R20, and the consumer's weekly income is R320. Suppose we have constructed the consumer's budget line with pizzas on the vertical axis and milk shakes on the horizontal axis. Given this information, if the price of a milk shake doubles to R40, then what will happen to the budget line?

• A) It will move so that it intersects the horizontal axis at 16 milk shakes per week.
• B) Its slope rises to -1/2.
• C) It will move so that it intersects the horizontal axis at 8 milk shakes per week.
• D) It will shift inward but remain parallel to its original position.

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Definitions:

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow that categorizes human needs into a hierarchical structure, beginning with physiological needs and progressing to self-actualization.

Social Status

The position or rank of a person within the societal hierarchy, influenced by factors such as wealth, occupation, education, and family background.

Humanistic Theory

An approach to psychology that emphasizes individual potential for growth and the role of unique perceptions in guiding behavior and mental processes.

Internal Conflict

Psychological struggle within the mind of a person, often involving the competition of multiple desires, needs, or duties.