Assume That a Consumer Spends a Given Budget on Only

question 26

Multiple Choice

Assume that a consumer spends a given budget on only two goods, and that the prices of the two goods are constant. The budget line in this case would:

• A) Definitely be a straight downward-sloping line
• B) Possibly be a straight upward-sloping line
• C) Be a curved graph bowed outwards
• D) Be a curved bell-shaped graph

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Definitions:

Fraudulent Misrepresentation

Occurs when a false statement is knowingly made to induce another party to act, resulting in harm or loss.

Puffery

A salesperson’s exaggerated claims concerning the quality of goods offered for sale. Such claims involve opinions rather than facts and are not considered to be legally binding promises or warranties.

Fraudulent Misrepresentation

False statements or claims made knowingly with the intention of deceiving another party, leading them to enter into a contract or agreement.

Undue Force

Excessive or inappropriate use of physical or psychological pressure in an attempt to influence someone's actions.