If the Consumer's Income and All Prices Simultaneously Double,then the Optimum

question 326

Multiple Choice

If the consumer's income and all prices simultaneously double,then the optimum consumption bundle will

• A) shift outward relative to the old optimum.
• B) move leftward along the old budget constraint.
• C) not change.
• D) shift inward relative to the old optimum.

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Definitions:

Red Blood Cells

The cells in the blood responsible for carrying oxygen from the lungs to the body's tissues and returning carbon dioxide back to the lungs.

Osmosis

The movement of water molecules through a semipermeable membrane from a region of lower solute concentration to a region of higher solute concentration.

Concentration Gradient

A difference in the concentration of a substance from one point to another, as for example, across a cell membrane.

Plasmolysis

The process in which cells lose water in a hypertonic solution, resulting in the shrinkage of the cell membrane away from the cell wall.