This Figure Shows a Consumer's Budget Constraint for Apples (Vertical

question 27

Multiple Choice

This figure shows a consumer's budget constraint for apples (vertical axis) and oranges (horizontal axis) .If the price of oranges increases,how is the budget constraint affected?

• A) The budget constraint shifts inward.
• B) The budget constraint does not change.
• C) The vertical intercept E decreases and the horizontal intercept F remains the same,making the budget constraint flatter.
• D) The vertical intercept E is unchanged and the horizontal intercept F decreases,making the budget constraint steeper.

Comprehend internal rate of return (IRR) and its application in project evaluation.

Explain the importance of contingency planning in financial management.

Recognize the underestimation of true NPV in conventional capital budgeting.

Understand the impact of operating leverage on forecasting risk.