An Increase in the Price of a Good

question 24

Multiple Choice

An increase in the price of a good

• A) rotates the budget line inward and changes its slope.
• B) rotates the budget line outward and changes its slope.
• C) results in a movement downward along the budget line.
• D) results in a movement upward along the budget line.
• E) shifts the budget line inward and does not change its slope.

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Definitions:

Without Recourse

A financial agreement where the seller is not liable to the purchaser for any failure of the assets or obligations sold.

Materially Altered

A change in a document or agreement that significantly affects its terms or conditions.

Holder In Due Course

A legal term for a person who has acquired a negotiable instrument in good faith and for value, and thus is protected against certain defenses and claims that could be raised against the original payee.

Payee

The party in a transaction who receives the payment.