Suppose That a Consumer's Income Triples

question 45

Multiple Choice

Suppose that a consumer's income triples. However, at the same time, both the price of x and the price of y also triple. This consumer has experienced

• A) an increase in purchasing power.
• B) a decrease in purchasing power.
• C) no change in purchasing power.
• D) a pivot in the budget constraint with an undetermined effect on purchasing power.

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Definitions:

FMVSS-121

Federal Motor Vehicle Safety Standard 121, which outlines the requirements for air brake systems in commercial vehicles to ensure safe stopping distances.

Disc Brakes

Vehicle brake system in which squeeze pressure is applied to a rotor by a caliper. Both pneumatic and hydraulic disc brakes are used on trucks.

Wedge Brakes

A type of brake mechanism where a wedge is used to press brake linings against a drum or rotor to slow or stop motion, often found in heavy vehicles.

Primary Circuit

The main electrical circuit in a system, responsible for providing power to the essential components or functions.