Suppose there are two goods (X and Y). On a traditional graph of a budget line a tripling of all prices and incomes will
a. alter the slope of the budget line only.
b. alter the slope of the budget line as well as the Y-intercept.
c. alter the slope of the budget line as well as the X-intercept.
d. leave the budget line unaltered.
d
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There are dozens of pasta producers that sell pasta to hundreds of Italian restaurants nationwide. The restaurant owners buy from the cheapest pasta producer available to them.
A. Yes, meets all assumptions B. No, no free entry C. No, not many sellers D. No, not a homogeneous product
Which of the following is a defining characteristic of a perfectly competitive market?
A) advertisements by well-known celebrities B) persistent economic profits in the long run C) no restrictions on entry into the industry D) higher prices being charged for certain name brands