Which Event Would Cause the Budget Line to Shift Outward

question 95

Multiple Choice

Which event would cause the budget line to shift outward?

• A) increase in income
• B) decrease in income
• C) increase in the price of one of the goods
• D) decrease in the price of one of the goods

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Definitions:

Purely Competitive

A market structure characterized by many sellers offering identical products, with no single seller able to influence market price.

Pure Monopolist

An exclusive market condition where a single company or entity has complete control over the production and sale of a product or service.

Nondiscriminating Pure Monopolist

A monopolist who charges all consumers the same price for its product or service, regardless of the market segment.

Marginal Revenue

The supplementary earnings obtained through the sale of one extra product or service unit.