If the Consumer's Income Increases While the Prices of Both

question 120

Multiple Choice

If the consumer's income increases while the prices of both goods remain unchanged,what will happen to the budget line?

• A) The budget line rotates inward from the intercept on the horizontal axis.
• B) The budget line rotates outward from the intercept on the vertical axis.
• 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:

Generalization

The process by which a response is given in the presence of stimuli that are similar to the stimulus that originally elicited the response.

Fixed-Interval Schedule

A reinforcement schedule where a response is rewarded only after a fixed amount of time has elapsed.

Operant Conditioning

A training technique in which the likelihood of a behavior is changed through the use of incentives or consequences.

Extinction

In psychology, the gradual weakening and eventual disappearance of a learned response when it is no longer reinforced.