If We Observe That William's Budget Constraint Has Moved Inward

question 520

Multiple Choice

If we observe that William's budget constraint has moved inward, then we know for certain that

• A)his income must have decreased.
• B)he will be indifferent between goods X and Y.
• C)the price of one or both of the goods must have increased.
• D)his utility will decrease.

---

Definitions:

Autoimmune Diseases

Conditions where the immune system mistakenly attacks the body's own tissues.

Lactose-Free

Describes food or products that do not contain lactose, a sugar found in milk and dairy products, suitable for individuals with lactose intolerance.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow that categorizes human needs into five levels, from basic (physiological) to higher-order (self-actualization) needs.

Aesthetic Needs

The human desire for beauty and pleasing experiences in one’s surroundings, contributing to mental and emotional well-being.