A price floor policy establishes a minimum price for a market. Which of the following results from a binding price floor?

If prices and income in a two-good society double, what will happen to the budget line?

A) The intercepts of the budget line will increase. B) The intercepts of the budget line will decrease. C) The slope of the budget line may either increase or decrease. D) Insufficient information is given to determine what effect the change will have on the budget line but we know society is worse-off. E) There will be no effect on the budget line.

Combinations of two goods along the indifference curve yield:

a. equal prices for the two goods. b. equal marginal utilities. c. the same total utility. d. zero total utility.