If Prices of Both Horizontal and Vertical Goods Increase by 50

question 15

Multiple Choice

If prices of both horizontal and vertical goods increase by 50%,

• A)budget constraint will be unchanged.
• B)slope of the budget constraint stay the same.
• C)slope of the budget constraint will decrease.
• D)budget constraint will shift outward in a parallel fashion.

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Definitions:

Subception

A psychological phenomenon where an individual responds to stimuli subconsciously without being consciously aware of the stimuli.

Existential Philosophy

A branch of philosophy concerned with the analysis of existence and the way humans find themselves existing in the world. It emphasizes individual freedom, choice, and responsibility.

Trait Approach

A perspective in psychology that focuses on identifying, describing, and measuring individual differences in personality based on stable traits.

Behaviorism

A school of psychology that focuses on observable behaviors and the ways in which they're learned, rather than on emotions or thoughts.