An Increase in a Consumer's Budget

question 180

Multiple Choice

An increase in a consumer's budget

• A) changes the relative prices of the goods.
• B) changes the slope of the budget line.
• C) decreases consumption possibilities.
• D) increases consumption possibilities.
• E) has no effect on the consumer's budget line.

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Definitions:

Market Development

Strategies or activities aimed at finding new markets or expanding existing ones for a product or service.

Diversification

A strategy for managing risk that diversifies a portfolio by incorporating a broad range of investments to reduce the effect of any single asset's performance.

Market Penetration

A measure of the extent to which a product or service is recognized and bought by customers within a particular market.

Market Development

Strategies or actions that seek to expand an existing product into new markets or demographic segments.