An Outward Shift of the Budget Constraint Will Cause a Consumer

question 71

Multiple Choice

An outward shift of the budget constraint will cause a consumer to buy

• A)fewer normal goods and more inferior goods.
• B)more normal goods and fewer inferior goods.
• C)more normal goods and more inferior goods.
• D)fewer normal goods and fewer inferior goods.

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Definitions:

Sealed-Bid

A bidding process where all bids are submitted confidentially to the auctioneer with no bidder knowing how much others have bid.

Lemons

In the context of economics, refers to products of lower quality that are difficult to distinguish from higher quality products before purchase. In a general context, it's a citrus fruit.

Expected Value

A statistical concept that calculates the average outcome of a random event when the process is repeated many times.

Dipstick

A tool used for measuring the quantity or level of fluid in a reservoir, notably oil in an engine.