Suppose That the Quantity of Pizzas Consumed Per Month Is

question 69

Multiple Choice

Suppose that the quantity of pizzas consumed per month is on the x-axis and the quantity of tacos consumed per month is on the y-axis, an increase in the price of pizza holding the price of tacos constant will:

• A)cause the budget line to shift inward toward the origin in a parallel fashion.
• B)cause the y-intercept to remain the same, but the x-intercept will move closer to the origin.
• C)cause the budget line to shift outward from the origin in a parallel fashion.
• D)cause the x-intercept to shift away from the origin.

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Definitions:

Profit Margin

The percentage of revenue that remains after all operating expenses, taxes, and costs have been deducted from total sales.

Net Income

The final amount a company keeps as profit after deducting all costs and taxes from its gross revenue.

Marginal Tax Rate

The rate of tax imposed on your income, corresponding to each applicable tax bracket.

Average Tax Rate

Total taxes paid divided by total taxable income.