-In the Above Figure, If the Price of Milk Rises

question 261

Multiple Choice

-In the above figure, if the price of milk rises, the budget line

• A) rotates outward and the slope becomes steeper.
• B) shifts inward and its slope does not change.
• C) rotates inward and the slope becomes steeper.
• D) rotates inward and the slope becomes more shallow.

---

Definitions:

Straight-Line

An approach where the expense of an asset is uniformly allocated across its lifespan to calculate depreciation.

Double-Declining-Balance

A depreciation technique that increases the standard rate of depreciation twofold, thus diminishing an asset's value at a faster pace.

Units-of-Activity

A depreciation method that allocates the cost of an asset over its useful life based on the number of units it produces or hours it operates.

Straight-Line Depreciation

A method of calculating the depreciation of an asset by evenly spreading its cost over its useful life.