If the Consumer's Income and All Prices Simultaneously Decrease by One-Half

question 368

Multiple Choice

If the consumer's income and all prices simultaneously decrease by one-half, then the optimum consumption will

• A)shift outward relative to the original optimum.
• B)move leftward along the original budget constraint.
• C)shift inward relative to the original optimum.
• D)not change.

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Definitions:

Sulcus

A term specifically referring to the indentations or narrow grooves on the surface of an organ or tissue, including the brain.

Gyrus

A ridge or fold between two clefts on the cerebral surface in the brain, associated with increased surface area for neural processing.

Cranial Nerves

A set of twelve nerves that originate in the brain and provide motor and sensory functions primarily to the structures of the head and neck.

Spinal Cord

The spinal cord is a long, thin, tubular structure made up of nervous tissue, which extends from the medulla oblongata in the brainstem down the vertebral column to the lumbar region.