Use the Following to Answer Questions

question 97

Multiple Choice

Use the following to answer questions:
Figure: Budget Constraint 2
-Figure: Budget Constraints 3 Refer to the figure. What could have caused the shift in the budget constraint?

• A) The price of music downloads decreased.
• B) The price of movie downloads increased.
• C) This consumer's income increased.
• D) This consumer's income decreased.

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Definitions:

Slums

Highly populated urban residential areas consisting mostly of closely packed, decrepit housing units in a situation of deteriorated or incomplete infrastructure.

Homeless

Individuals who lack a fixed, regular, and adequate nighttime residence, facing significant challenges in obtaining shelter and stability.

Cash Equivalent

Assets that are easily convertible into cash with little to no risk of change in value.

Price Ceiling

A legal maximum price that can be charged for a particular good or service to prevent prices from becoming too high.