Suppose That the Price of Good X Triples and the Price

question 27

Multiple Choice

Suppose that the price of good x triples and the price of good y doubles while income remains constant.On a graph where the budget line is drawn with x on the horizontal axis and y on the vertical axis, the new budget line

• A)is flatter than the old one and lies below it.
• B)is flatter than the old one and lies above it.
• C)crosses the old budget line.
• D)is steeper than the old one and lies below it.
• E)is steeper than the old one and lies above it.

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Definitions:

Benefit Caps

A limit imposed on the total amount of certain benefits that a household can receive, intended to ensure that the total benefits do not exceed a specified amount.

Effective Administration

The efficient and productive management of organizational resources and processes to achieve desired outcomes and objectives.

Benefits Programs

A range of programs offered by employers to provide various types of health care, retirement, and other benefits to their employees.

Cafeteria Benefit Plans

Employee benefit programs that allow workers to choose from a variety of pre-tax benefits options, akin to a cafeteria selecting various meals.