Refer to the budget line shown in the diagram above. Given the same money income, reductions in the prices of both products C and D will:
A) shift the budget line outward on the horizontal axis, but leave it anchored at "10" on the vertical axis.
B) shift the budget line to the left.
C) shift the budget line to the right.
D) have no effect on the budget line.
Ans: C) shift the budget line to the right.
Economics
You might also like to view...
What is the price of a coupon bond that has annual coupon payments of $85, a par value of $1000, a yield to maturity of 10%, and a maturity of three years?
A) $211.38 B) $898.84 C) $962.70 D) $1255.0
Economics
Buyers and sellers rarely share the burden of a tax equally
a. True b. False Indicate whether the statement is true or false
Economics