If a Consumer Purchases Two Goods, Food (Measured Along the X-Axisaxis)

question 49

Multiple Choice

If a consumer purchases two goods, food (measured along the x-axisaxis) and housing (measured along the y axis) , then what happens to the slope of the consumer's budget constraint if the price of food falls?

• A) The new budget constraint shifts inward but is parallel to the original budget constraint.
• B) The new budget constraint pivots inward (towards the origin) along the x-axis. The new slope is steeper than the original slope.
• C) The new budget constraint pivots inward (towards the origin) along the x-axis. The new slope is flatter than the original slope.
• D) The new budget constraint pivots outward (away from the origin) along the x-axis. The new slope is flatter than the original slope.

---

Definitions:

Conversion Control Sequence

A method in programming languages to convert data from one format to another.

%-+10d

A format specifier in programming that displays an integer right-justified in a field of at least 10 characters, including a leading sign.

C Preprocessor

A tool in C and C++ that performs text substitution before the actual compilation process begins.