Suppose a Consumer Spends His Income on CDs and DVDs

question 445

Multiple Choice

Suppose a consumer spends his income on CDs and DVDs. If his income decreases, the budget constraint for CDs and DVDs will

• A)shift outward, parallel to the original budget constraint.
• B)shift inward, parallel to the original budget constraint.
• C)rotate outward along the CD axis because he can afford more CDs.
• D)rotate outward along the DVD axis because he can afford more DVDs.

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Definitions:

Stay-at-Home Dads

Fathers who choose to stay home to care for their family and manage household duties instead of working outside the home.

Breadwinner

A person who earns money to support their family, typically the sole or primary earner in a household.

Discretionary Income

Money remaining after the costs of basic necessities have been paid.

Basic Necessities

Essential items required for survival, including food, clothing, shelter, and clean water.