A Leftward Shift of a Consumer's Budget Line to a Position

question 71

Multiple Choice

A leftward shift of a consumer's budget line to a position parallel with the original one could indicate that the

• A)price of one product has decreased in relation to the other.
• B)prices of both products have decreased in the same proportion.
• C)consumer's money income has increased and the prices of both products have also increased but proportionately less.
• D)consumer's money income has increased but the prices of both products have increased proportionately more.

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Definitions:

Equivalent Units

A concept used in process costing that converts partially completed goods into a number of completed units, facilitating the calculation of unit costs.