When the Price of One Good Changes,while the Prices of All

question 121

Multiple Choice

When the price of one good changes,while the prices of all others stay the same:

• A) the change in relative prices is reflected in a change in the slope of the budget constraint.
• B) the change in relative prices can be thought of as a change in the opportunity costs of each good.
• C) the change in relative prices is reflected in a change in the marginal utility per dollar spent on each good.
• D) All of these statements are true.

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Definitions:

Affect

The observable expression of emotions, which can influence someone's experience and communication.

Except

Excluding or with the exclusion of; used to specify something as not included in a category or group.

By

A preposition indicating agency, means, or location; used to specify the person or thing that performs an action or through which a result is obtained.

Quite

Used as an adverb to indicate a considerable degree or fully; extremely.