The income effect of a price change is depicted by
a. a parallel shift of the budget constraint at the old set of prices.
b. a parallel shift of the budget constraint at the new set of prices.
c. a movement along the budget constraint holding the level of satisfaction constant.
d. not observable and is therefore neither a shift nor a change in the slope of the budget constraint.
b
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In which of the following areas were substantial New Deal reforms NOT made?
a. The commercial banking system. b. The Federal Reserve System. c. Securities markets. d. Corporate accounting standards.
The manner in which one oligopolist reacts to a change in price, output, or quality made by another oligopolist in the industry is
A) a cooperative game. B) the reaction function. C) a zero-sum game. D) the concentration ratio.