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.

---

Definitions:

Indirect Materials

Materials used in the production process that are not directly traceable to a finished product, such as lubricants for machinery.

Work in Process Inventory

The inventory account that tracks the costs associated with incomplete products in a manufacturing process.

Customized Production

The process of manufacturing products tailored to individual specifications or customer requirements.

Indirect Labor

Labor costs not directly associated with the production of goods, such as maintenance and cleaning.