Identify the Statement That Is False

question 12

Multiple Choice

Identify the statement that is false.

• A) An increase in the amount of income changes the intercepts of the budget constraint but not the slope.
• B) An increase in the price of good x changes both the x -intercept and the slope of the budget constraint.
• C) An increase in the price of good x and an equal percentage increase in the price of good y changes the x -intercept, the y -intercept, and the slope of the budget constraint.
• D) An increase in the price of good x and an increase in the price of good
• y may or may not change the slope of the budget constraint.

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Definitions:

Wholesalers

Businesses that buy goods in large quantities from manufacturers and then sell them in smaller amounts to retailers or other businesses.

Foreseeable Plaintiffs

Individuals who could be reasonably expected to be affected by the defendant's actions or negligence and therefore may have grounds to sue.

Product Liability

Product liability refers to the legal responsibility of manufacturers and sellers for injuries caused by defective or dangerous products.

Strict Product Liability Theory

A legal doctrine that holds a seller, distributor, or manufacturer liable for any damages caused by a defective product, regardless of fault.