Suppose the Price of Is $20 and the Price

question 49

Multiple Choice

Suppose the price of is $20 and the price of is $10 and that good is plotted on the horizontal axis.If the price of doubles and the price of triples,leaving the consumer's income unchanged,the budget line

• A) will become steeper.
• B) will become flatter.
• C) will shift in toward the origin.
• D) will shift out from the origin.

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Definitions:

Normal Profit

The minimum amount of profit necessary for a company to remain competitive in the market, often considered a breakeven profit.

LIFO

The Last In, First Out approach to inventory valuation prioritizes the sale of the most recently manufactured items before older stock.

Tax Advantage

A tax advantage refers to the economic bonus that applies to certain accounts or investments that are exempt from taxation, or taxed at a lower rate.

Rising Prices

A situation where the general level of prices for goods and services increases over a period, indicative of inflation.