The Quantity of Good a Is Measured Along the Vertical

question 19

Multiple Choice

The quantity of good A is measured along the vertical axis, and the quantity of good B is measures along the horizontal axis. If the price of Good A falls

• A) the vertical intercept of the budget line moves along the vertical axis away from the origin.
• B) the vertical intercept of the budget line moves along the vertical axis toward the origin.
• C) the horizontal intercept (along Good B) of the budget line will increase.
• D) none of the above

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Definitions:

Modified Capitalism

An economic system that incorporates elements of capitalism with various degrees of government intervention or social welfare policies.