If the Consumer's Income and All Prices Simultaneously Decrease by One-Half

question 368

Multiple Choice

If the consumer's income and all prices simultaneously decrease by one-half, then the optimum consumption will

• A)shift outward relative to the original optimum.
• B)move leftward along the original budget constraint.
• C)shift inward relative to the original optimum.
• D)not change.

---

Definitions:

Prenatal Factors

Environmental and genetic influences that affect the development of the fetus during pregnancy.

Temperament

The aspects of an individual's personality, such as introversion or extroversion, that are believed to be innate rather than learned.

Differentiating

The process of distinguishing or identifying differences between two or more things or people.

Visual Cliff

An experimental setup used to study depth perception and fear of heights in infants, involving an apparent, but safe, drop-off.