Which of the Following Statements Is Not Correct

question 262

Multiple Choice

Which of the following statements is not correct?

• A)A reduction in money income will shift the budget line to the right.
• B)A reduction in money income accompanied by an increase in product prices will necessarily shift the budget line to the left.
• C)An increase in product prices will shift the budget line to the left.
• D)An increase in money income will shift the budget line to the right.

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Definitions:

Budget Proportion

The allocation of financial resources among various categories or items in a budget.

Necessity

A good or service that is essential for living and is deemed indispensable.

Few Substitutes

A market condition where there are limited alternative products or services available to consumers, often leading to higher prices.

Price-Elastic

A descriptor for goods or services whose demand significantly changes with a change in price.