An Increase in the Price of Good X Will Have

question 96

Multiple Choice

An increase in the price of good X will have what effect on the budget line on a normal X-Y graph?

• A) A parallel outward shift of the line
• B) An increase in the vertical intercept
• C) A decrease in the horizontal intercept
• D) A parallel inward shift of the line

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Definitions:

Financial Reporting

The process of disclosing financial performance and position of a company through financial statements issued periodically.

Economic Substance

A principle that transactions should reflect their true economic purpose, not just their legal form.

Faithful Representation

Faithful Representation refers to financial information that accurately reflects an entity's financial performance, position, and changes in financial position.

Plant And Equipment

Long-term tangible assets used in the operations of a business, not intended for resale.