If the Graph Shown Represents Steph's Budget Constraint,and the Price

question 47

Multiple Choice

If the graph shown represents Steph's budget constraint,and the price of hairbands were to increase,the slope of Steph's budget constraint would become:

• A) steeper, reflecting the fact that hairbands are now relatively less expensive.
• B) flatter, reflecting the fact that hairbands are now relatively more expensive.
• C) steeper, reflecting the fact that earrings are now relatively less expensive.
• D) flatter, reflecting the fact that earrings are now relatively more expensive.

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Definitions:

Agent

A person authorized to act on behalf of another (known as the principal) in business transactions or other matters.

Transaction

An agreement or exchange between two or more parties that entails a transfer of goods, services, funds, or any other item of value.

Liable

Legally responsible or obligated to someone else under the law.

Direct Liability

Liability that is attributed to an individual or entity due to their own actions or negligence, not through the actions or negligence of others.