If the Quantity of X Is Measured on the Horizontal

question 42

Multiple Choice

If the quantity of X is measured on the horizontal axis and the quantity of Y is measured on the vertical axis, the slope of the budget constraint will decrease if the:

• A) price of X decreases.
• B) price of Y decreases.
• C) marginal utility of X decreases.
• D) budget decreases.

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Definitions:

Rational-emotive

A form of psychotherapy that identifies and changes irrational beliefs, emphasizing emotional well-being through rational thinking.

Gestalt

A theory in psychology suggesting that the mind tends to perceive objects as whole patterns or configurations, rather than merely as sums of individual components.

Group

A number of individuals who come together or are classified together based on shared characteristics or for a common purpose.

Cognitive Models

Theoretical constructs that explain and predict thinking patterns, decision making, and problem solving in humans.