An Increase in a Consumer's Income Will NOT

question 89

Multiple Choice

An increase in a consumer's income will NOT:

• A) shift the budget line away from the origin.
• B) increase the horizontal intercept.
• C) increase the vertical intercept.
• D) change the slope of the budget line.

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Definitions:

Reciprocity

A mutual exchange of privileges or interactions between two parties, where each party provides benefits to the other with a sense of obligation.

Pluralistic Ignorance

A type of misunderstanding that occurs when members of a group don’t realize that the other members share their perception (often, their uncertainty about how to react to a situation). As a result, each member wrongly interprets the others’ inaction as reflecting their better understanding of the situation.

Car Accident

An unexpected and unintended event involving vehicles that can cause damage and injury.

Heart Attack

A medical emergency where the blood flow to a part of the heart is blocked, often by a blood clot, causing damage to the heart muscle.