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:

Proximity

The principle suggesting that objects that are physically close to each other tend to be perceived as belonging together.

Closure

The psychological term that describes an individual's desire or tendency to seek a sense of completeness or wholeness in perceiving or organizing information or experiences.

Continuation

The process of extending or carrying something on over a period of time.