Assume Claudia's Budget Constraint Is Demonstrated by Line a in the Graph

question 33

Multiple Choice

Assume Claudia's budget constraint is demonstrated by line A in the graph shown.Which of the following would cause Claudia's budget constraint to shift to line C?

• A) Claudia's income increased.
• B) Claudia's income decreased.
• C) Claudia's preferences for these two goods decreased.
• D) The prices of both goods have gone down.

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Definitions:

Public Issues

Refers to the offering of securities, like stocks or bonds, to the public to raise capital.

Renegotiate

The process of revising the terms of a contract or agreement.

Market Value

The current price at which an asset or service can be bought or sold, determined by the supply and demand dynamics in the market.

Rights Offering

A method by which a company raises capital by offering existing shareholders the chance to buy additional shares at a discount.