Suppose the Price of a Is $20 and the Price

question 35

Multiple Choice

Suppose the price of A is $20 and the price of B is $10 and that good A is plotted on the horizontal axis. If the price of B doubles and the price of B triples, leaving the consumer's income unchanged, the budget line

• A) will become steeper.
• B) will become flatter.
• C) will shift in toward the origin.
• D) will shift out from the origin.

---

Definitions:

Noncontrolling Interest

Represents the portion of equity in a subsidiary not attributable, directly or indirectly, to the parent company.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, typically with fixed dividends.

Variable Interest Entities (VIEs)

Entities in which an investor holds a controlling interest that is not based on a majority of voting rights, requiring special accounting treatment under financial reporting standards.

Voting Stock

Shares that give the shareholder the right to vote on important company decisions, essentially similar to voting common stock but may include different classes of stock.