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:

Abdicating Responsibilities

The act of refusing to fulfill or discharging one's duties or responsibilities.

Standards

Standards are established guidelines or specifications designed to ensure products, services, and processes are consistent, reliable, and fit for their intended purpose.

Corrective Action

Measures taken to identify and rectify a problem or deviation from a set standard or expectation.

Organizational Performance

An analysis of a company's efficiency, effectiveness, and ability to meet its goals and objectives.