Suppose That the Prices of Good X and Good Y

question 51

Multiple Choice

Suppose that the prices of good x and good y both double and income triples.On a graph where the budget line is drawn with x on the horizontal axis and y on the vertical axis,

• A)the budget line becomes steeper and shifts inward.
• B)the budget line becomes flatter and shifts outward.
• C)the budget line becomes flatter and shifts inward.
• D)the new budget line is parallel to the old budget line and lies below it.
• E)None of the above.

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Definitions:

Hourly Wages

Compensation paid to employees based on the number of hours worked, typically expressed as an amount of money per hour.

Divided Tasks

The breaking down of tasks into smaller, more manageable parts to be completed by different individuals or teams, often to increase efficiency.

Piece Rates

A pay system where employees are paid based on the quantity of units they produce or tasks they complete.

Commissions

Payments made to employees or agents based on the value of sales or similar transactions they facilitate or complete.