-The Above Figure Gives Your Budget Line Between CDs and Magazines

question 31

Multiple Choice

-The above figure gives your budget line between CDs and magazines. If the price of a magazine increased, then the budget line

• A) shifts outward and the slope does not change.
• B) rotates inward with no change in the horizontal intercept.
• C) rotates inward with no change in the vertical intercept.
• D) rotates outward with no change in the vertical axis.

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Definitions:

Operating Activities

Business activities directly related to the production and delivery of goods and services, generating the primary revenue stream.

Ending Inventory

The cost of merchandise on hand for selling when an accounting cycle ends.

Cost of Goods Sold

The immediate expenses associated with manufacturing goods that a company sells.

Purchases

The acquisition of goods or services in exchange for money, constituting a component of a company’s inventory costs.