Figure 21-3 in Each Case, the Budget Constraint Moves from BC-1 to BC-1

question 64

Multiple Choice

Figure 21-3
In each case, the budget constraint moves from BC-1 to BC-2.
-Refer to Figure 21-3. Which of the graphs in the figure could reflect a simultaneous decrease in the price of good X and increase in the price of good Y?
(i) graph a
(ii) graph b
(iii) graph c
(iv) graph d

• A)(ii) only
• B)(iii) only
• C)(ii) or (iv) only
• D)None of the above is correct.

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Definitions:

Steering Assembly

The collection of components in a vehicle that allows the driver to guide and direct the vehicle in the desired direction.

Parallelogram Linkage

A linkage in the form of a parallelogram that connects a recirculating ball gearbox to the steering knuckle.

Suspension

The system in a vehicle that connects the wheels to the rest of the car, providing a smooth ride by absorbing bumps and vibrations from the road.

Gearbox

A mechanical device used in vehicles for varying power transmission and torque between the engine and the wheels, often by utilizing gears of different sizes.