The Diagram Below Shows a Set of Budget Lines Facing

question 95

Multiple Choice

The diagram below shows a set of budget lines facing a household. FIGURE 6-8
-Refer to Figure 6-8.The movement of the budget line from ab to ef could be caused by

• A)a decrease in money income.
• B)a decrease in the price of either food or housing.
• C)an equal percentage decrease in the price of both food and housing.
• D)an equal percentage increase in the price of both food and housing.
• E)an increase in the price of either food or housing.

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Definitions:

Independent Legal Entity

An organization that has legal rights and obligations independent of its members, such as the ability to enter contracts, sue, and be sued.

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Business Risk

Business risk involves the potential for financial loss in a company's operations, stemming from factors like market fluctuations, regulatory changes, or operational failures.

Insurance Policy

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