If the Price of One Good Increases While the Price

question 107

Multiple Choice

If the price of one good increases while the price of the other good and the consumer's income remain unchanged,what will happen to the budget line?

• A) The budget line rotates inward from the intercept on the axis of the good that did not change in price.
• B) The budget line rotates outward from the intercept on the axis of the good that did not change in price.
• C) The budget line shifts inward without a change in slope.
• D) The budget line shifts outward without a change in slope.

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Definitions:

Passive

Describes a state or quality of being inactive or accepting situations without resistance or response.

Irritable

A state of being easily annoyed or angered, often resulting from stress or discomfort.

Easy Temperamental Style

Refers to an individual's innate emotional and behavioral disposition that is determined to be naturally positive and relaxed.

Frustration

A feeling of irritation or annoyance due to the inability to achieve a goal or satisfy a need.