If the Budget Line Rotates, Then We Know That

question 225

Multiple Choice

If the budget line rotates, then we know that

• A) income has changed.
• B) their has been a change in the consumer's tastes.
• C) the price of one of the goods had changed.
• D) the consumer was not maximizing their utility.

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Definitions:

Retail Inventory Method

The retail inventory method is an accounting technique used by retailers to estimate their inventory's ending balance/cost based on the relationship between the cost of merchandise and its retail price.