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

question 71

Multiple Choice

-The above figure gives your budget line between CDs and magazines. Which of the following changes would NOT allow you to buy more CDs?

• A) a decrease in the relative price of CDs
• B) an increase in income
• C) a decrease in the price of magazines with no change in the price of CDs
• D) None of the above answers is correct because all of the above changes allow you to buy more CDs.

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Definitions:

Stranded

Left isolated or in a difficult situation without the means to move or act.

Utilities

Essential services provided to the public, including electricity, gas, water, and telecommunications.

Retailing

The selling of goods and services to consumers for personal or household use.

Convenience

The ease and efficiency with which a product or service can be acquired or used by the consumer.