The Quantity of Good M Is Measured Along the Vertical

question 179

Multiple Choice

The quantity of good M is measured along the vertical axis, and the quantity of good N is measured along the horizontal axis. If the prices of both goods M and N declines by 50% each, then the budget line

• A) shifts inward to the left by 50%.
• B) shifts outward to the right by 50%.
• C) shifts outward to the right by 100%.
• D) rotates clockwise by 180 degrees.

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Definitions:

Exclusive Possession

A legal term referring to the right of a party to use and control property to the exclusion of others.

Lease Termination

The ending of a lease agreement either by mutual agreement, expiration of the lease term, or other means as specified in the contract or by law.

Rental Period

The agreed upon duration between a landlord and tenant during which the tenant has the right to use and occupy the rental property.

Mortgage

A means of securing loans; title of property is held by the moneylender as security in some jurisdictions; in other jurisdictions, a mortgage is simply a charge against title.