The Income of a Consumer Is $40, the Price of a Is

question 26

Multiple Choice

The income of a consumer is $40, the price of A is $8, and the price of B is $4. If the quantity of A is measured vertically, then the slope of the budget line is

• A)−0.5.
• B)−1.0.
• C)−2.0.
• D)−2.5.

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Definitions:

Reductions in Inventory

Decreases in the quantity of goods that a company holds, which can indicate stronger sales or a preparation for lower demand.

Investment Component

A part of economic theory that represents funds allocated towards investment products or goods with the expectation of future returns or income.

Future Periods

Time frames or intervals that have yet to occur, often considered in planning and forecasting.

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar GDP, stripping out the effects of inflation.