Assume That a Consumer Purchases Only Two Products

question 99

Multiple Choice

Assume that a consumer purchases only two products. Suppose that the consumer's money income doubles, and the prices of the two products also double. These changes in income and prices will result in

• A) a shift of the budget line inward to the left.
• B) a shift of the budget line outward to the right.
• C) no change in the budget line.
• D) an increase in the slope of the budget line.

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Definitions:

Episodic

Pertaining to or consisting of separate events or incidents, often used to describe memory or narrative structure.

Procedural

Relating to the process by which something is done or accomplished, often used in context with rules or methods in various fields.

Information Processing

The mental activities involved in the understanding, processing, and storage of information.

Cognitive Functioning

The capacity of the brain to process information, encompassing abilities such as perception, memory, thinking, and problem-solving.