Other Things Equal,if There Is a Price Increase of a Good

question 6

True/False

Other things equal,if there is a price increase of a good measured on the vertical axis,the budget constraint will shift outward.

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Definitions:

Drive Reduction

A theory in psychology that motivation arises from biological needs driving behavior to return to a state of homeostasis or balance.

Optimal Arousal

A theory suggesting there is a level of arousal that is ideal for performance, balancing between too low and too high.

Incentive

Something that motivates or encourages an individual to perform an action or behave in a certain way.

Pleasure Principle

A concept in psychoanalytic theory referring to the drive towards immediate satisfaction of instinctual urges and desires.