If a Consumer's Income Decreases,in What Way Will the Budget

question 74

Multiple Choice

If a consumer's income decreases,in what way will the budget constraint for cola and pizza change

• A)It will shift outward, parallel to the old budget constraint.
• B)It will shift inward, parallel to the old budget constraint.
• C)It will rotate outward toward pizza because the consumer can afford more pizza.
• D)It will rotate outward toward cola because the consumer can afford more cola.

---

Definitions:

Social Psychology

The study of how people think about, influence, and relate to other people.

Social Cognition

The area of social psychology exploring how people select, interpret, remember, and use social information.

Stereotype

A generalization about a group’s characteristics that does not consider any variations from one individual to another.

Person Perception

The processes by which an individual uses social stimuli to form impressions of others.