Assume That a Consumer Purchases Only Two Products and There

question 32

Multiple Choice

Assume that a consumer purchases only two products and there is a decrease in the consumer's income. The prices of the two products stay constant. The decrease in income will result in a:

• A) Shift of the budget line inward to the left
• B) Shift of the budget line outward to the right
• C) A decrease in the slope of the budget line
• D) An increase in the slope of the budget line

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Definitions:

Mixed Cost

An expense that contains both fixed and variable cost elements, changing in total with increases or decreases in production or sales volume.

Advertising Costs

Expenses related to promoting products or services, including media buys, marketing materials, and other promotional activities.

Fixed Cost

Expenses that remain constant for a given period and do not vary with the level of production output or business activity.

Thread

In computing, a sequence of executable instructions that can be managed independently by a scheduler.