Assume That a Consumer Purchases Only Two Products

question 25

Multiple Choice

Assume that a consumer purchases only two products. Suppose that the consumer's money income doubles, and the prices of the two products also double. These changes in income and prices will result in:

• A) A shift of the budget line inward to the left
• B) A shift of the budget line outward to the right
• C) No change in the budget line
• D) An increase in the slope of the budget line

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Definitions:

Clean Water Act

A principal United States federal law, established in 1972, aiming to regulate pollutant discharges into the waters of the United States and to ensure water quality.

Penalties

Punishments imposed for violating a law, rule, or contract.

Environmental Pollution

The contamination of the natural environment by pollutants causing adverse effects on living organisms and the ecosystem.

Environmental Regulations

Rules and standards implemented by governments to control pollution and protect the environment.