-In the Figure Above, a Decrease in the Price of a Bag

question 417

Multiple Choice

-In the figure above, a decrease in the price of a bag of potato chips would result in the budget line

• A) making a parallel shift toward point a.
• B) making a parallel shift toward point c.
• C) becoming flatter.
• D) becoming steeper.

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Definitions:

Source of Law

The origin from which a particular legal rule or principle derives, such as a constitution, statute, court decision, or executive order.

Downward Sloping Demand

A characteristic of most demand curves, indicating that as the price of a good decreases, the quantity demanded increases.

Monopoly Power

The ability of a single supplier to control the market prices and output of a good or service, due to lack of competition.

Monopolistically Competitive

Describes a market structure where many firms sell products that are similar but not identical, allowing for some degree of market power.