An Increase in the Price of the Good Measured on the Horizontal

question 94

Multiple Choice

An increase in the price of the good measured on the horizontal axis of a budget line diagram will

• A)make the budget line flatter
• B)make the budget line steeper
• C)leave the budget line unchanged
• D)cause a parallel inward shift of the budget line
• E)cause a parallel outward shift of the budget line

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Definitions:

Personal Income Tax

Tax levied on individuals or households based on their total income from all sources.

Corporate Income Tax

A tax imposed on the net income or profit of corporations and other business entities by the government.

Specific Excise Taxes

Taxes imposed on particular goods or services, such as gasoline or cigarettes, charged per unit sold.

Business Property Taxes

Taxes levied on the real estate and sometimes the personal property used in the operation of a business.