If the Budget Line Rotates, Then We Know That

question 225

Multiple Choice

If the budget line rotates, then we know that

• A) income has changed.
• B) their has been a change in the consumer's tastes.
• C) the price of one of the goods had changed.
• D) the consumer was not maximizing their utility.

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Definitions:

Product Mix

The complete range of products that a company offers for sale, including variations in product lines, sizes, flavors, and other characteristics.

Product Lines

A group of related products offered by a single company that serve a similar customer segment or have been developed from the same technology.

Marketing Mix

A set of controllable marketing tools—Product, Price, Place, Promotion—that a company uses to pursue its marketing objectives in the target market.

Product Class

A broad category of products that serve a similar function and are perceived by consumers as interrelated or substitutable.