As the Price of a Good Increases, Holding the Consumer's

question 28

Multiple Choice

As the price of a good increases, holding the consumer's income and the price of the other good constant, the budget line will:

• A)shift inward toward the origin.
• B)shift outward away from the origin.
• C)rotate the budget line inward toward the origin.
• D)rotate the budget line outward away from the origin.

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Definitions:

Experimental Research

A research method involving the manipulation of variables to establish cause-and-effect relationships.

Cause and Effect

The principle that actions or events lead to a certain consequence or outcome, wherein the cause is why something happens, and the effect is what happens.

Arithmetic Mean

The sum of a set of numerical values divided by the number of values in the set, commonly known as the average.

Average

A statistical measure representing the central or typical value in a set of data, calculated mainly as the mean or median.