Other Things Equal,if There Is a Price Increase of a Good

question 6

True/False

Other things equal,if there is a price increase of a good measured on the vertical axis,the budget constraint will shift outward.

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Definitions:

Marginal Private Benefit

The surplus value that consumers or producers get from buying or making an extra unit of a good or service.

Marginal Private Cost

Marginal private cost is the cost that a producer incurs in making an additional unit of a good or service, excluding any external costs.

Socially Optimal

A state in which resources are allocated in the most efficient and equitable manner from a societal perspective.

Network Externality

A situation where the value or utility of a product or service to one user increases with the number of other users of the same or compatible products or services.