This Graph Shows Three Different Budget Constraints: A,B,and C

question 44

Multiple Choice

This graph shows three different budget constraints: A,B,and C.
If Doug is on budget constraint C in the graph shown,what would cause it to shift to budget constraint B?

• A)Doug loses his job.
• B)Doug finds soda at a warehouse outlet for a lower price.
• C)Doug's grocery store raises the price of milk by 10 percent.
• D)Doug's grocery store has lowered all prices by 33 percent.

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Definitions:

Commodity Brokers

Professionals who act as intermediaries in the buying and selling of commodities, such as agricultural products, metals, and energy resources, on behalf of clients.

Stockbrokers

Professionals who buy and sell securities on behalf of their clients for a fee or commission.

Federal Homestead Exemption

A legal provision that protects a portion of a homeowner's property from creditors in the event of bankruptcy or financial distress, under federal law.

Bankruptcy Code

The set of laws codified under Title 11 of the United States Code, governing bankruptcy proceedings and outlining the legal framework for managing insolvency.