Roger spends all of his money on racquetballs and food. What would happen to Roger's budget line if his income increased by 10 percent, holding prices constant?
a. It would shift inward.
b. It would rotate about the axis for food.
c. It would rotate about the axis for racquetballs.
d. Nothing would happen to the budget line, because the relative prices for food and racquetballs have not changed.
e. It would shift outward.
E
Economics
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The initial supply and demand curves for a good are illustrated in the above figure. If there are technological advances in the production of the good, then the new equilibrium price for the good
A) is less than $6. B) is $6. C) is more than $6. D) could be less than, equal to, or more than $6.
Economics
Which of following is an example of a homogeneous product?
A) Gasoline B) Copper C) Personal computers D) Winter parkas E) both A and B
Economics