Suppose a Consumer Can Purchase Only Two Goods,pasta and Cheese

question 35

Multiple Choice

Suppose a consumer can purchase only two goods,pasta and cheese.Let the quantity of pasta be measured on the vertical axis and the quantity of cheese be measured on the horizontal axis.If the price of pasta falls,with no change in the price of cheese or in the consumer's money income,then the budget line for the consumer will rotate

• A)toward the origin and become flatter.
• B)toward the origin and become steeper.
• C)away from the origin and become flatter.
• D)away from the origin and become steeper.
• E)outward parallel to the existing budget line.

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Definitions:

Cost Of Goods Sold

The immediate expenses linked to manufacturing goods sold by a company, encompassing both materials and labor costs.

Work In Process-Department X

The costs assigned to products that are in the middle of the manufacturing process within a specific department but are not yet completed.

Goods In Process

Inventory items that are partially completed; they have been started in production but are not yet finished goods.

Process Cost Accounting System

A method of accounting used to track and allocate costs associated with the production process.