Which of the Following Is Not Correct

question 246

Multiple Choice

Which of the following is not correct?

• A)An increase in income shifts a consumer's budget constraint outward.
• B)An increase in the price of good X causes a consumer's budget constraint to rotate inward along the X axis.
• C)A decrease in the price of good Y causes a consumer's budget constraint to rotate outward along the Y axis.
• D)Changes in income affect the slope of the budget constraint as well as its location on a graph.

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Definitions:

Competitive Market

A market structure where many sellers are offering products or services that are similar, fostering high levels of competition.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers is equal to the quantity supplied by producers, resulting in market equilibrium.

Agricultural Product

Goods resulting from the cultivation of plants and rearing of animals intended for human use or consumption.