According to the Following Graphs,what Does the Curve in the Lower

question 56

Multiple Choice

According to the following graphs,what does the curve in the lower graph show? The price of Y is $15 per unit.

• A)how a consumer's utility-maximizing choices of X and Y change when the budget constraint changes
• B)how a consumer's preferences change when income changes
• C)how a consumer's utility-maximizing choices of X changes when the price of X changes
• D)how a consumer's utility-maximizing choices of Y changes when the price of Y changes
• E)both c and d

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Definitions:

Comparative Advantage

The capability of a nation or business to manufacture a specific product or offer a service at a lesser opportunity cost compared to its rivals.

Opportunity Cost

The expenditure experienced from not picking the immediate runner-up selection during a choice process.

Economies of Scale

The cost advantage achieved when production becomes efficient, leading to a decrease in the per-unit cost as the volume of production increases.

Autarky

A situation where a country or economy operates in total self-sufficiency, without engaging in international trade.