If One of the Products a Consumer Buys Rises in Price,the

question 120

Multiple Choice

If one of the products a consumer buys rises in price,the consumer's budget line will

• A) shift farther away from the origin of the graph and not change its slope.
• B) rotate inward, closer to the origin.
• C) vanish.
• D) undergo no change.
• E) shift farther away from the origin of the graph and become steeper.

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Definitions:

Tax Burden

The measurement of taxes paid by an individual or business, often expressed as a percentage of income or revenue.

Consumers

Consumers are individuals or entities that purchase goods or services for personal use and not for manufacture or resale.

Long Run

The time period in which all inputs can be varied.

Excise Tax

A tax levied on specific goods, services, or activities, often aimed at discouraging certain behaviors (like smoking) or generating revenue from specific sectors.