Assume That There Are Two Goods,x and Y

question 207

Multiple Choice

Assume that there are two goods,x and y.The quantity of good x is measured on the x-axis and the quantity of good y is measured on the y-axis.If the price of good y rises,then the

• A) y-axis intercept of the budget line increases.
• B) y-axis intercept of the budget line increases and the x-axis intercept of the budget line decreases.
• C) y-axis intercept of the budget line decreases and the x-axis intercept does not change.
• D) slope of the budget line changes.
• E) Both answers C and D are correct.

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Definitions:

Immediate Result

The direct and swift outcomes that follow a specific action or decision without delay.

Delayed Effect

A situation where the impact or result of an action, event, or decision is not immediately apparent, but becomes evident later on.

Influence Attempt

An effort made by an individual to change the behavior or attitudes of one or more others.

National Cultural Values

The shared beliefs, practices, norms, and values that characterize a nation or society, influencing behaviors and attitudes.