If the graph shown represents Steph's budget constraint, and the price of hairbands were to increase, the slope of Steph's budget constraint would become:
A. steeper, reflecting the fact that hairbands are now relatively less expensive.
B. flatter, reflecting the fact that hairbands are now relatively more expensive.
C. steeper, reflecting the fact that earrings are now relatively less expensive.
D. flatter, reflecting the fact that earrings are now relatively more expensive.
C. steeper, reflecting the fact that earrings are now relatively less expensive.
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Deadweight loss refers to the loss in ________
A) producer surplus due to a fall in the market price B) consumer surplus due to an increase in the market price C) total surplus due to a market distortion such as an externality D) total surplus due to a change in consumers' preferences
A monopoly is a firm that produces a good or service for which no close substitute exists
Indicate whether the statement is true or false