If the price of the good measured on the horizontal axis is subject to volume discounts, then:
A. the budget line will get steeper as the consumer moves along it from left to right.
B. the budget line will get flatter as the consumer moves along it from left to right.
C. the indifference curve will get steeper as the consumer moves along it from left to right.
D. the indifference curve will get flatter as the consumer moves along it from left to right.
B. the budget line will get flatter as the consumer moves along it from left to right.
You might also like to view...
The marginal revenue of a monopolistically competitive firm
A) will equal average revenue. B) cannot be negative because the price the firm charges will always be greater than zero. C) can be negative if the firm charges a high price. D) can be negative if the firm charges a low price.
Which of the following is not a nonsensical headline?
a. British perpetuities about to mature. b. Disney issues new bonds with term of 7 percent. c. Corporate bonds currently pay higher interest rates than government bonds. d. Standard and Poor's judges new junk bond to have very low credit risk.