A Change in the Price of One Good Results in a Rotation

question 38

True/False

A change in the price of one good results in a rotation of the budget line, so that it is steeper or flatter.

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Definitions:

Fixation

Arrested development at a psychosexual stage occurring because of excessive gratification or frustration at that stage.

Divergence

The act of moving away in different direction from a common point; in creativity and thinking, it refers to the generation of multiple solutions to a given problem.

Convergence

The process by which eyes adjust their angle so that the visual axes meet at the point of focus, or in a broader sense, the tendency for ideas and phenomena to evolve towards a common point.

Pupil

The opening in the center of the iris of the eye that regulates the amount of light that enters the eye to reach the retina.