If the Price of One Good Increases While the Price

question 107

Multiple Choice

If the price of one good increases while the price of the other good and the consumer's income remain unchanged,what will happen to the budget line?

• A) The budget line rotates inward from the intercept on the axis of the good that did not change in price.
• B) The budget line rotates outward from the intercept on the axis of the good that did not change in price.
• C) The budget line shifts inward without a change in slope.
• D) The budget line shifts outward without a change in slope.

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Definitions:

Observations

The action or process of closely monitoring or noticing something or someone, often to gather data or information.

Agreement

A mutual understanding or arrangement, often formalized, between two or more parties.

Triangulation

A method used in research to increase credibility by combining multiple perspectives, data sources, or methodologies to study a single phenomenon.

Research Methods

Various strategies, techniques, and procedures used to investigate specific questions and test hypotheses in scientific studies.