Assume the Quantity of Good X Is Measured on the Horizontal

question 10

Multiple Choice

Assume the quantity of good X is measured on the horizontal axis and the quantity of good Y on the vertical axis.Initial prices are P_X = $5 and P_Y = $10.The consumer's income is $100.If P_Y increases to $20,then

• A)the entire budget line shifts parallel toward the origin.
• B)the budget line will rotate toward the origin,slope remaining constant.
• C)the budget line will rotate toward the origin with the slope changing from 1/2 to 1/4 (in absolute values).
• D)the entire budget line shifts parallel away from the origin.
• E)the budget line will rotate away from the origin with the slope changing from 1/4 to 1/2 (in absolute values).

---

Definitions:

Nature

The essential qualities or characteristics of something, or the physical world collectively, including plants, animals, landscapes, and other features and products of the earth, as opposed to humans or human creations.

Nurture

The influence of external factors like environment, education, and social experiences on the development of an individual's behaviors and traits.

Inherited

Passed down genetically from one generation to another, referring to traits or conditions determined by one's genes.

Nature-nurture Debate

The nature-nurture debate discusses the relative importance of an individual's innate qualities versus personal experiences in determining or causing differences in physical and behavioral traits.