The above figure gives your budget line between CDs and magazines. What would allow you to buy more CDs?
A) a decrease in the relative price of CDs
B) an increase in income
C) a decrease in the price of magazines with no change in the price of CDs
D) All of the above changes would allow you to buy more CDs.
D
You might also like to view...
Differences in resource endowments are differences in
a. tariffs charged by each country b. consumption patterns across nations c. production patterns across nations d. the quantity, but not the quality, of resources available in different nations e. the quality and quantity of resources available in different nations
During an election year, the federal government would mostly likely increase _____
a. tax rates b. interest rates c. the discount rate charged to commercial banks d. the minimum reserve requirement of commercial banks e. government purchases of goods and services